28 June 2017

Issued shares to employees or directors in the year to 5 April 2017?

Share transactions involving employees between 6 April 2016 and 5 April 2017 are to be reported to HMRC via a 'Form 42' by 6 July 2017.

Form 42 reporting requirements

HM Revenue & Customs is asking that every issue between 6 April 2016 and 5 April 2017 be reported to them via a 'Form 42' by 6 July 2017. 

The Form 42 reporting requirement applies only to shares issued to employees or directors. It does not apply to transfers between individuals, shares issued on incorporation or shares via an Enterprise Management Incentive (EMI) scheme. Where the requirement does apply, Form 42 is a fairly straightforward document. 

If shares have been issued to directors or employees and a Form 42 is required, you have two options:

  1. Complete and submit the form yourself via HMRC's Online Services, selecting the employment related securities option once you've logged in. 
  2. We can complete and submit the form for you. If you would like us to do this, please let us know by email or by calling Morag Watson on 0131 473 3500. A member of our employment tax team will then be in contact. 

Enterprise Management Incentives (EMI)

Please note that if you are an employer who has an Enterprise Management Incentive (EMI) plan or has granted EMI share options to employees in the past, you will be required to report this to HMRC via an electronic form 'EMI 40'. This is the case even if there is nothing formal to report.

This report must also be submitted by 6 July 2017. Again, if you require assistance with this, please let us know.

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