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Form 42 was used to tell HMRC about employee share schemes. The form is no longer in use, and the scheme is now known as Employment Related Securities.

The process for form 42 when it was still in use

The form dealt with employee share options which took place during the 2010-11 tax year. An employer would be responsible for completing and submitting the form 42 to tell HMRC about the options.

A form 42 had to be submitted by 7th July after the tax year for which it has been issued. For instance, a form 42 for 2011-12 was to be received by HMRC by 7th July 2012.

The only exception was when the form was issued on the 8th June or later, after the tax year for which it was intended.

Employers had 30 days from the issue date shown on the form. As with most HMRC forms, late submissions would be charged a penalty, with additional penalties added daily.

HMRC weren’t obliged to send the form 42. Responsibility lay with the employer to report the purchase of shares by directors or employees, anything that changed the value of shares held by employees or directors, and the sale of the shares for anything over the market value.

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