Is it possible to be a Director of a limited Company and be separately S/E?

**northernladuk** · 17 January 2012, 09:55

Have you spoken to your accountant about this. I know people will berate me for saying buy surely if your company finances are starting to make you ill some professional advice is what you need not the random mumblings of an online forum.

**craig1** · 17 January 2012, 09:56

In a nutshell, you can have as many jobs as you want, all with different employment states. The only limiter is usually contractual, for example, many permie jobs will have contract clauses about you having to seek permission before taking additional paid employment.

I've not addressed the question about whether you're intending to just shut up shop in your other company or not as it's not clear to me what you intend to do. Do you want to keep it going as a going concern (as suggested by your post title) or shut the company and try to get the outstanding debtor invoices paid to you?

**Jeremiah@RHJAccountants** · 17 January 2012, 10:17

There is nothing stopping you from running your limited company and going back into employment at the same time.

You can also keep your company open as you may want to come back to it in the future or close it if you have no use for it anymore. That would have to be your choice.

But i would really advise speaking to an accountant as this is really a matter they can help you on.

They can offer professional advice and they will have much more experiance in this area.

If this is making you feel ill get an accountant ASAP

**tryingtounderstand** · 17 January 2012, 10:40

Thank you for your help, its much appreciated.

I have always used an accountant who has done my books but when I have spoken to her before about this I never get definitive answers to make a decision on, this is why I am looking myself for the information which has brought me to this site.

I have no way of paying the monies owed and have maxed all my personal credit cards as the money brought into the business is always taken up with running costs / payment plans to HMRC and for the hours I put in I work for very little.

If I carry on for another 2 months it will just mean I will have used my overdraft to its limit which is why I am trying to do this now. I will be forced to close the business by some means as people will want to be paid and I have no means to pay them.

What I need to do to keep paying my mortgage is keep earning (have a wife and 3 children at home). I can get some work Self Employed but it would be the same work as I am doing now though the business so I would need to set up as being self employed. Is this possible?

Thanks again for your time.

**tryingtounderstand** · 17 January 2012, 10:48

The business has nothing to sell, only a laptop, camera and a contracted mobile phone so I would not be able to pay HMRC. The business is basically my labour and the mark up I place on the materials I purchase use so without me I have no business.

**Nixon Williams** · 17 January 2012, 12:16

You can be a director of a limited company whilst at the same time you can be self-employed, employed, a partner etc - there is no limit on the number of income streams you can have nor is there anything to prohibit you from having one business trading as a limited company and one as a sole trader.

There can be tax implications, such as VAT issues if you try to have several 'separate' businesses to avoid registering for VAT.

From what you have described, if cash is so tight in the company, I would suggest that you review your dividend policy - if the company fails, the liquidator may question the payment of dividends if there are not sufficient funds to meet the company's liabilities.

Alan

Is it possible to be a Director of a limited Company and be separately S/E?