Employers operating employee share schemes or those who have issued, sold of gifted shares to employees need to take immediate action to meet the HMRC deadline for filing a Form 42 by 6th July 2014.
Tax Manager at PM+M Chartered Accountats, Julie Walsh, warns “If you have issued shares to employees, in any format, in the last year you need to ensure you complete and submit a Form 42, you must file the return by that date, even if you have nothing to report”.
Julie continues “The form must also be used to report non-tax advantaged or unapproved share plan schemes for employees or directors and any other reportable event. It is the employer’s responsibility to decide whether it has reportable transactions.
“HMRC can be harsh with penalties and could issue a substantial fine for inaccurate or late forms, or for failling to submit at all” says Julie.
2013-14 is the last year for which paper Forms 42 will have to be submitted to HMRC. There is now a new employment related security online service which requires all forms of share transactions, scheme or arrangements, whether approved or unapproved to be registered with HMRC. The deadline for 2014-15 is 6th July 2015, but employers are generally advised to act sooner to avoid any late filing penalties.
The link to access HMRC services can be found at: http://www.hmrc.gov.uk/shareschemes/annualreturns.htm#3
If you need any further guidence please contact Julie Walsh at PM+M on 01254 679131 or email email@example.com.