News: Press Releases:
Thousands of companies unaware of penalties

23 November 2004

Blick Rothenberg offers annual pre budget statement assistance to journalists as well as assistance on the day and comment afterwards.

The final deadline for Form 42, which the 2003 Finance Act requires all companies to complete if shares are issued to employees, is just a few days away, on November 30.

"The problem is that many companies are just unaware that they have to fill in form 42 which is a daunting 16 page booklet," said Steven Bruck, a partner with London chartered accountants Blick Rothenberg.

He added: " For example, every newly formed company, where shares are issued to an employee or director must complete for 42- even if they have not been sent one - although a simplified procedure does exist for newly formed companies.

"These requirements apply even for the smallest owner managed company set up by its directors."

The penalties for failure to complete the form on time can be up to £300 per transaction (and in addition the General Commissioners will have the authority to sanction penalties of up to £60 per transaction per day).

For the first year that these rules apply (to 5 April 2004) and where companies have not been automatically issued with the forms, the required last filing date of 6 July 2004 has been extended to 30 November, but this new requirement is still not known by many companies.

Bruck said: " At a time when small businesses are suffering increasingly from red tape and the government has expressed a wish to ease such burdens this really is bad news. Such forms and potential penalties make life more difficult for people trying to set up and run the new young businesses which are so important to the British economy."

For more information, or to set up an interview, please call David Barzilay +44 (0)20 7544 8980, Lizzie Jordan +44 (0)20 7544 8827 or Steven Bruck +44 (0)20 7544 8970

EDITOR'S NOTE:
Blick Rothenberg's client base includes a wide range of private sector companies in a variety of industries as well as professional firms and charities. This breadth of clientele means that they have practical experience of all accountancy issues ranging from UK tax and audits to acquisitions, disposals of businesses and international taxation. They also provide all-round taxation, accountancy and other financial services to their personal client portfolio.
Blick Rothenberg is authorised & regulated by the Financial Services Authority to carry on investment business.