The webinar is aimed at new and prospective company directors and will allow participants to ask questions. HMRC will then make the webinar available online.
The seminar, which will run from 11am to 12 noon, gives new directors an overview of their responsibilities to Companies House and to HMRC.
Changing the structure of a business from sole trader or partnership to a limited liability company can be complex. Directors are not self-employed - they are treated as employees of their company for tax purposes. And the company needs to operate a PAYE scheme when paying their salaries or wages and expenses or providing benefits in kind (such as a company car).
The webinar can help new directors get their tax right so they can concentrate on doing business.
It also includes information on registering or incorporating a new company with Companies House and telling HMRC that the company may be liable to pay Corporation Tax. It mentions the main taxes that companies may need to pay - Corporation Tax, PAYE and VAT. And tells directors about the records they will need to keep and the tax returns they will have to fill in.
The live webinar will last for one hour and a recorded version 30 minutes. It does not cover more complicated subjects like directors' loan accounts, share issues, IR35 etc but it will give links to the HMRC website where more detailed information can be found.
Participants are recommended to register in advance.
A recorded version will be available.
Although self-employment as a sole trader is the most common route into business, a significant number of traders set up, take over or become limited liability companies.
Many of these are small to medium-sized enterprises (SMEs) involving fewer than 10 people, which may not fully appreciate all the implications of this change of business structure. They may not realise that they are no longer self-employed and cannot continue to make personal drawings from the business without taking the tax position into account. They may be unaware of the more formal accounting requirements of company law and Corporation Tax.