Inland Revenue Grants Extension For Form 42 Filers

by Robert Lee, Tax-News.com, London

10 August 2004

The UK's Inland Revenue has announced that firms not yet issued with Form 42 will be given more time to file information on share and other securities transactions following ongoing problems being faced by many businesses attempting to comply with the new rules.

As a result, these firms now have until November 30 to supply the necessary information relating to employment-related share schemes, whilst a simplified form will be issued for companies needing only to report share acquisitions on incorporation.

It is effectively the second time that the Revenue has been forced to push back the filing date after firms were told that they would not face fines for missing the original July 6 deadline provided they filed by September 6.

The Revenue’s latest move is also an acknowledgement of ongoing difficulties faced by firms in complying with the new requirements, with many claiming to be in the dark about the disclosure rules until the last minute and others unable to download and print the relevant forms from the agency’s website.

“We recognise that both employers and advisers who are new to these reporting requirements may need to put information-gathering systems in place,” the Revenue conceded in a statement.

“In recognition of this and of the representations made, we have decided to allow a further extension of the date by which information has to be reported if companies are to avoid penalty proceedings," it added.

However, those companies that were issued with a Form 42 but did not return it prior to the original July 6 deadline may now be faced with penalty proceedings, the tax collector warned.

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