The 2009/10 form must be completed and returned to the Employee Shares & Securities Unit by 6 July 2010. If the form was issued on or after 8 June 2010, it must be returned within 30 days from the date of issue shown on the form.

Penalties may be chargeable where the form is received late or is incomplete or inaccurate.

The form requires details of security options granted to or exercised by employees, securities acquired by employees and events occurring after the acquisition of the securities. Where a limited company is incorporated in the UK in the year ended 5 April 2010 a report of the acquisition of the initial subscriber shares (also called founder shares) by the directors or prospective directors is not required if certain conditions are fulfilled. Details of the conditions to be met are in form 42 guidance.

The majority of newly UK incorporated companies should meet the conditions and will be relieved of the requirement to complete this form.

The facility to file these returns online has been suspended from 1 April 2010, as part of an overhaul of HM Revenue & Customs IT infrastructure so you will need to file a paper return. Since 6 April 2010 the Employee Shares & Securities Unit is being transferred from London to Nottingham and forms should be returned to the Nottingham address regardless of the address on the form.

For assistance with completing your year end forms or for further information on the above topic please contact us.