The iXBRL deadline has arrived

April Fool’s Day – we wish – iXBRL deadline has arrived

 

From today it is now a HMRC requirement that all Company Tax Returns must be filed online with accompanying financial statements and computations in iXBRL format


So how prepared are you for this change? Read on to find out more.

What is iXBRL?
iXBRL (inline eXtensible Business Reporting Language) is a new, electronic format for business information, which HMRC expects to provide benefits in the preparation, analysis and communication of business and financial data. iXBRL is becoming a global standard for financial reporting it requires “tags” to be attached to figures and narrative information within accounts.
How does this impact on companies?
When companies send their tax returns to HMRC after 1 April 2011, they will have to do so electronically and attach iXBRL financial statements and computations. Otherwise their tax returns could be rejected by HMRC.  Electronic PDF files do not contain iXBRL tags and will not be accepted by HMRC as a valid means of submission. 

Companies will need a method to create iXBRL documents, which will either involve:
• upgrading or purchasing software and training staff, or
• outsourcing to an organisation who can prepare iXBRL documents.
Either way, there is additional work compared to preparing financial statements and tax computations submitted to HMRC by post and there will be a cost implication, particularly for financial statements.

What should companies be doing?
You may not have to submit your tax return on 1 April 2011, but you should be considering what method you will use to meet this requirement.

Are there any exceptions?
The requirement applies to all companies who currently submit a corporate tax return, regardless of size. For the time being, small charities, clubs and societies may use either iXBRL or PDF for their accounts, but any tax computations must be in iXBRL. This concession will be removed as soon as HMRC release their free software.
What are Bevan & Buckland doing about iXBRL?
We’re all ready, our tax and accounts software is fully compliant and will be able to submit your data using iXBRL tagging. Where you produce your own accounts or where the format of your accounts dictates that standard templates cannot be used, we will use a manual tagging tool. Please speak to your usual contact about procedures and costs involved.
Is there the same requirement for filing statutory accounts at Companies House?
On 1st September 2009, HMRC and Companies House issued a statement announcing a common approach to the online filing of company accounts. Whilst online filing is not yet mandated for statutory accounts, Companies House have indicated that online filing is targeted for 2013.
For further advice on how this change impacts you, please contact us on 01792 410100 or email help@bevanbuckland.co.uk to arrange a consultation.
Web site http://www.bevanbuckland.co.uk

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