Inland Revenue Moves Back Deadline For Form 42 Submissions

by Robert Lee, Tax-News.com, London

25 June 2004

It has emerged this week that the Inland Revenue has been forced to move back another reporting deadline, this time in respect of its new Form 42, which requires businesses to report details of employee share schemes.

According to accounting industry news website Accountingweb, several firms have learned ahead of an official announcement by the Revenue that companies will not face fines if they submit Form 42 by September 7 this year, two months after the original July 6 deadline.

It appears the move is a long overdue acknowledgement by the tax authority that firms were experiencing severe difficulties completing Form 42, with many businesses unaware that the form even existed until very recently.

It has also been reported that many companies have experienced difficulties printing the form from the Inland Revenue website.

Unfortunately, this ‘phased approach’ to penalties only applies to firms that have not already been sent a return.

The news comes hot on the heels of the Revenue’s decision to make changes to the new tax scheme disclosure rules, which have resulted in the initial August 6 deadline being postponed until September 30.

Commenting on the move, Paymaster General Dawn Primarolo explained:

"These changes will ensure that disclosure will only be required of those schemes and arrangements which pose the greatest threat to the Exchequer and strike the right balance as to the range of people who will be required to report. They will also provide promoters sufficient time to make the transition to the new regime without compromising its objectives."

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