Form 42 is used to inform the Inland Revenue of taxable events that have occurred in connection with the provision of employment-related shares and securities under unapproved schemes. The version of the form that is to be used for reporting such taxable events for the 2004/05 tax year is now available on the Inland Revenue website.

Employers whom the Inland Revenue believe are likely to have reportable events will be sent a form to complete at the start of the 2005/06 tax year. These will generally be those that completed forms for the previous tax year. The filing deadline, which was extended last year, is fixed this year as 6 July 2005. Only those sections of the form where there is something to report, and the declaration in Section 7, have to be completed.

Employers issued with a form but who do not have anything to report should make a Nil return by ticking the box in section 6 of the form, signing the declaration and returning the form by 6 July 2005. Penalties may be imposed for failure to return the form on time.

However, employers who are not issued with a form but who have events to report must also complete a form and file it by 6 July 2005. A copy of the form may be downloaded from the Inland Revenue's website. Penalties may also be imposed if a reportable event is not reported.

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Sources:
Inland Revenue
Inland Revenue
Finance Act 2003