Form 42 deadline extended again

The new Inland Revenue return for reporting securities under unapproved share schemes is Form 42.

Form 42 is issued on or after the end of each tax year to employers known by the Revenue to operate unapproved share schemes. The usual deadline for completion is 7th July (unless it was issued after 8th June when it must be returned within 30 days).

As we reported earlier in our story, Small Business Disquiet over Form 42, as there had been some difficulties completing the form, the Revenue originally extended the return deadline this year to 6th September. Since then, the Revenue received continued protests from small business groups unhappy at the way the new Form 42 rules have been implemented.

However, the Revenue has once again extended the form deadline according to a statement released earlier this month:

"We have held a meeting, and received further representations from the major accountancy bodies, through the forum of the Working Together Group, identifying continuing concerns, particularly for those coming within the scope of the employment-related securities' rules for the first time. "

"We recognise that both employers and advisers who are new to these reporting requirements may need to put information-gathering systems in place. 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."

Therfore, in cases where the Inland Revenue did not issue a Form 42 to the employer in April 2004, they will not take penalty proceedings if they receive the required information by 30th November 2004.

More details on this latest Form 42 extension can be read here.