Chorley Council is set to stop Xyone Ltd trading from a detached home above the garage at 22a Windsor Road.

Neighbours have complained about employees and clients parking along the street and taking up spaces outside their homes.

Council planning chiefs are now looking at taking enforcement action against owner for not applying for planning permission to use the property as a base for the business.

The enforcement action could force the firm, which employs 12 people, to cease trading at the address and relocate.

Half of Xyone Ltd's staff work remotely in helping the firm promoting websites and providing online support services.

Managing director Stephen Robinson said: "In terms of the parking, the neighbours think it's our business taking up all the parking spaces, but in fact a lot of people who work in town park on this road.

"We have got a green policy and two of our employees walk to work and two people do car sharing.

"A retrospective planning application has gone in to Chorley Council and the business rates have been paid since we've been here.

"The only reason we are based here at the moment is because we were looking to relocate to commercial premises at Matrix Park, but that has fallen through because of the economic climate."

A report to Chorley Council's development control committee said: "It is recognised that such small business enterprises that operate from residential properties do contribute to the local economy in terms of job creation and investment in the area, but such uses must be balanced against existing uses and amenity, especially in residential areas."

A Windsor Road resident, who asked to remain anonymous, said: "Finding a parking space is extremely bad in the morning and you can always see people going in and out of the house at certain times.

"The presence of the business in our street has exacerbated the parking problem."

If the council's proposal for enforcement action is approved, the enterprise would have to shut down within the next six months.

A final decision on the plans will be made at Chorley Council's planning meeting this week.