Own company when a permie

[SuperZ]

I think keeping schtum will be my initial avenue

I agree. I know what the others are saying but to avoid any issues just keep it quiet for now and see how your sideline develops. EMployers won't find out unless you tell them IMO.

Many people have second job, in the case of a second job the worse an employer can do is sack the person if it is against the permanent contract, they can't take ownership of any money that was made.

Companies don't own you, so I doubt they would be able to make a claim on something you developed in your own time, especially if it is not related to their business, and it's not as if you are trying to sell it to your employers either. I doubt there would be anything even remotely relating to this in your permy contract of employment.

Refering to something someone else said; being a manager and having a bright idea during lunch time is different from creating something in your evenings and selling it, especially if not directly related to employers business.

[d000hg]

If you developed the software in your spare time then this cannot be an issue with your permie employers to my mind.

Maybe if you went to court, I don't know if it's considered an unfair clause. But every job I have taken has this in the contract... however decent companies are normally happy as long as you tell them about it.

[d000hg]

Hi,

I am in a permie job but have had my own limited before when I was contracting. I have developed some software in my spare time. One piece is now making a decent regular contribution so I am now looking at how I manage the payment. I was thinking of settup up a ltd again and then piling the money up in there. Presumably all I need to pay is the corporation tax on it and do the books each year?
Other option is to go through an umberella but I figured it would be better having own ltd for it.

Either have a Ltd, or do it as a sole trader... if we're not talking big money that might be easier as you won't have such a need for an accountant which is relatively quite expensive if you only bring in a few £100/month.

[FarmerPalmer]

Maybe if you went to court, I don't know if it's considered an unfair clause. But every job I have taken has this in the contract... however decent companies are normally happy as long as you tell them about it.

Last company I was permie at, someone had an idea whilst working there. The company didn't take it up, so they left and presued it themselves. When they developed their idea and started making money their former employer went to court and took their business from them.

It was written into out contracts that any ideas we had, or anything we developed in out own time whilst employed by that company was owned by them.

[SueEllen]

Last company I was permie at, someone had an idea whilst working there. The company didn't take it up, so they left and presued it themselves. When they developed their idea and started making money their former employer went to court and took their business from them.

It was written into out contracts that any ideas we had, or anything we developed in out own time whilst employed by that company was owned by them.

Hence you make sure you have paperwork to prove that you had the idea before you started employment at the company.

[TykeMerc]

Hence you make sure you have paperwork to prove that you had the idea before you started employment at the company.

That's a hard argument to win as the employer might argue that some of the idea development took part during time at work, it's not reasonable to assert that no time was spent even contemplating the venture or product.

It's a very tricky situation for many people and I'd say the only foolproof way to do this with 100% safety would be to have the business venture running before taking the job, but of course that's quite silly in many cases.

I suppose it's all down to how the employer is and how canny the businessman can play it.