Tax rules warning

Firms in Bristol have been warned to comply with new taxdisclosure requirements for share benefits provided to employees orface hefty fines. Top Bristol accountancy firm Baker Tilly has warnedbusinesses not to ignore new tax rules or they could face heavypenalties. The rules require employers to file form 42 with theInland Revenue by July 6, if shares or securities have been providedto employees as benefits during the year ended April 5, or value hasbeen passed through them. Anne Farquhar, a tax partner at Baker Tillyin Bristol, said: "There is a real risk that companies will regardthis as just more form-filling and leave it too late. "The InlandRevenue has warned that it will enforce the new tax rules withsubstantial penalties. "If a company misses the July 6 deadline, itwill be fined GBP300 per reportable event, with a daily penalty ofGBP60 per reportable event for continued failure. "In the case of acompany which provides these benefits to 100 employees, there are 100reportable events. Missing the deadline will mean having to pay apenalty of GBP30,000."