Form42 - last minute extension

The Revenue has granted a two month extension to September 7, 2004, to the filing deadline for many Forms 42 relating to the new requirement to disclose details of company shares and unapproved share options issued to their directors and employees if this is by reason of a former, current or prospective employment.

There have been some concerns among businesses and accountants about the failure of many businesses to appreciate that there was a tax filing deadline on 6 July.

Now the Institute of Chartered Accountants in England and Wales (ICAEW) has reported that, after 'frantic phone calls' it has heard from the Working Together team that the Revenue is granting an extension to the filing deadline for many Forms 42 as follows:

"In the light of the practical difficulties some people are experiencing in completing Form 42, particularly having regard to the problem with printing it, we consider it appropriate to use our care and management powers to take a phased approach to penalties. We are, after all, in the business of helping people to comply where we can, and we realise this is all very new for a lot of smaller companies and advisers. Where people have not been issued with a form already (mainly those who we know are operating mainstream employee share schemes at the "top" end of the market) we will not take penalty action if people provide the necessary information to us by 7th September 2004.

"This effectively extends the time limit by two months to enable people to get to grips with the requirements and arrange to get a copy of the form by one means or another. Those who already have a form because we sent one to them have no excuse around the printing issue, or their understanding of the new rules and they also have a separate obligation to return the form sent to them, as a NIL return if appropriate. We are putting together an article for the main IR website which will give this message, details of a technical "work around" for the printing problem and some detailed practical guidance on completing Form 42, in the shape of FAQs. We are working to get this on the website early this week."