WITH the deadline for filing the revised Form 42 fast approaching, Worcester-based accountancy practice Crowther Beard is warning all local businesses to ensure that they are fully compliant or risk being liable for substantial penalties.

Form 42 requires details of "reportable events" in relation to securities and options that are obtained by reason of employment during the tax year which are to be reported to the Employee Shares and Securities Unit.

The difference this tax year, however, lies in the fact that as a result of the introduction a new online filing system on the HMRC website, the Revenue is no longer sending out a paper copy of the form, but a Notice to File a Form 42.

As such, all those who were issued with a notice have until Friday, July 6, to file the form, either by the newly available electronic method or via the standard paper form.

John Painter at Crowther Beard said: "On account of the fact that notices have been issued this year rather the actual forms, the worry is that many local businesses will either disregard the form altogether or forget about it until it is too late.

"Therefore, with the deadline getting closer, I would urge all businesses who have received a notice to first of all decide whether they are going to file their form electronically or on paper.

"If filing electronically it is important to first register with HMRC in order to use the online service, which in itself can take more than a week.

"While those who would prefer to file a paper form can print a copy from the HMRC website or request a copy from the ESSU, but time must be allowed for postage. In both cases it is again important to plan ahead.

"It is also important for those who have received a notice but have no reportable events' to file a nil report. On the other hand, if a business has not received a notice but a reportable event' has taken place, it is under an obligation to fill in Form 42.

"With substantial penalties for failing to file a Form 42, including charges of up to a £300 fixed penalty and up to a £60 daily penalty per reportable event, it is important for businesses to ensure compliance."

Anybody with queries concerning their status under the new Form 42 legislation should contact a professional accountant.