What is Form 42?

Form 42 was invented by the Taxman's share scheme team to report the potential tax benefit of employees acquiring shares in their employing company. The penalty for missing the deadline is £300 per share transaction, plus a potential £60 for each day the form is late.

Extra time.

The first deadline for submitting a Form 42 to report shares issued in the tax year 2003/04 was extended to September 7, 2004. (Except forms issued before April 6.) Then the Taxman said he will not take penalty proceedings if he receives the form by November 30, 2004.

Tip.

Check what shares were issued / transferred in the year to April 5, 2004, and whom they were issued to. This includes the value of subscriber shares on formation of a company: To avoid the risk of a penalty, report this information to the Taxman using a simplified Form 42 which you can download as a PDF file from his website at http://www.inlandrevenue.gov.uk/shareschemes/form 42- moretime.htm

If you feel you may have a problem with a Form 42 issue and wish to discuss it call Stuart Atkinson on 01482 226791

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