Setting up in competition with Employer

chriseeboy

Hi,

I'm sure I won't be the first nor the last to do this so please don't judge me harshly.

I am in full time employment. My main responsibility is providing income performance data to corporate companies. Along side this, I am planning to set up a business providing a similar service to small, independant businesses that strictly speaking, my employer could provide but doesn't actively seek.

It is my intention to build up my own business until such time that I can replace my current salary before I move into it full time. I have one client paying a small retainer and I need to register asap.

My question is;

When I register as self employed is my Employer notified by the tax office? Can my Employer inadvertantly discover that I am self employed via the tax office and discover my activity?

Your answers/advice would be most welcome.

tanith

Don't have the answer to your questions sorry, but I just wonder if you have checked your contract/terms of employment in case there is a clause about setting up in opposition to your boss. It might mean the sack so please check before you do anything....

chriseeboy

Hi Tanith,

Thanks for the heads-up. Regarding my contract of employment yes, I am running a risk allbeit I am working a different market. In fact, a second PAYE job/moonlighting can be regarded as a sackable offence under many employment contracts these days.

Thanks again.

Bean_Counter

chriseeboy wrote: »

When I register as self employed is my Employer notified by the tax office? Can my Employer inadvertantly discover that I am self employed via the tax office and discover my activity?

I don't think that HMRC would notify directly. However, you always run the risk that there might be a muck up with your tax code or something that might and they find out that way.

You should be OK, though.

conradmum

I doubt they could inform your current employer due to the Data Protection Act. I have done a similar thing and it hasn't changed my tax code, so the only way my employer would know would be if someone actually told them - which is a possibility in your case. However, I read my contract very carefully, sought advice from an employment solicitor and then asked my employer's permission (my contract was a bit sloppy).
If you continue on your current route, you risk being sued by your employer for all of your profits at least. Not having a go - just letting you know the consequences.