PTP is pleased to announce the introduction of PTP Accounts Production iXBRL Edition. The new
product allows practitioners to create, edit and file statutory
accounts that are compliant with iXBRL - the new technological
standard demanded by the HMRC. Although the filing of accounts in
the iXBRL format is not mandated until April 2011 PTP has
introduced the functionality well ahead of the deadline allowing
practitioners almost 6 months to become familiar with the new
product.
The iXBRL functionality was added to the PTP CT Platform in April 2010 a full year before
the timeline set by HMRC and over 30,000 iXBRL submissions have
been made by practitioners using the PTP CT Platform.
For practitioners who currently use Microsoft Word to prepare
and file their accounts and who do not wish to migrate to PTP
Accounts Production software, there are other solutions.
- An iXBRL tagging service. This service is based around the
Seahorse product from CoreFiling the inventors of the iXBRL
standard. More details can be found
here.
- IRIS OpenResourcing offers a range of outsourcing options for
practitioners including an outsourced tagging solution. More
details can be found here
The coming few months present an ideal opportunity for
practitioners to familiarise themselves with iXBRL and prepare for
the approaching deadline. This page contains useful information and
practical advice on the steps required to ensure your practice is
ready.
What is XBRL/iXBRL?
As more financial information
is passed between businesses over the Internet there is a need to
employ a standard ‘language’ to minimise miscommunication. XBRL
(eXtensible Business Reporting Language) is an international IT
data standard designed to facilitate the reporting of financial
information.
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iXBRL is a technology developed for HMRC that retains the
formatting of the documents being submitted; the result of this is
machine readable XBRL data that retains the original human-readable
formatting. To achieve this, certain elements of the tax
computation and the accounts ‘documents’ will need to be tagged. In
total there are close to 14,000 individual elements that require
analysis and many of which require tagging.
Why is it being implemented?
In his 2006 review of HMRC Lord Carter recommended that the
Government should set an aspirational goal for HMRC that it should
aim for universal electronic delivery of business tax
returns by 2012. This included the submission of PAYE, VAT
and Corporation Tax (CT).
While significant changes have already occurred in the PAYE and
VAT area, the implementation of iXBRL will allow HMRC to meet
its obligations for CT.
Who does this affect?
Under Government proposals all tax returns from companies,
clubs, societies and associations will need to be filed online,
with the computation and accounts attachments in the specified
iXBRL data standard.
Returns filed on paper and returns filed electronically with
accounts and computations sent as PDF attachments will no longer be
accepted by HMRC.
When will this be introduced?
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Since November 2009 HMRC has been accepting submissions using a
range of methods: the new iXBRL format, existing online formats
with PDF attachments or paper filings.
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From April 2011 HMRC will no longer accept PDF
attachments or paper filings. The submission of tax
computations and accounts using iXBRL will become a compulsory
requirement.
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The April 2011 ‘deadline’ is not the end of the story. By this
date the HMRC only requires a minimum number of elements in the
corporation tax computations and accounts submissions to be tagged.
As time goes on more elements will require tagging although precise
details have yet to be published. The next milestone is April 2013
and you can rest assured IRIS will be ready.
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What does it mean for my practice?
This major change will impact all practices in the coming year.
Whilst iXBRL won't affect practices just yet, it would be prudent
to ensure your software is iXBRL compliant as the April 2011
mandatory filing date approaches.
Practices currently filing Corporation Tax using paper (or using
PDF attachments) will face the greatest change. These options will
no longer be available to practitioners and they should use the
coming months to selecting iXBRL compliant software.
How do I ensure my practice is ready?
Preparation for iXBRL cannot begin soon enough, however is not
too late. Here are a few practical steps you can take to ensure
your practice is ready before the April 2011 dealine.
What you can do today
Define an iXBRL plan and identify a responsible individual to
execute it. Establish the impact iXBRL will have on your firm and
workload. Start familiarising your accounts/tax staff with the
taxonomies and the Minimum Tagging List. File iXBRL compliant
Business Tax returns using PTP which introduced this
functionality in April 2010.
November/December 2010
Install the PTP Accounts Production iXBRL
Edition and begin familiarising yourself and your staff
with the new functionality. Once a set of accounts has been
finalised view the iXBRL output and ensure item tags match
descriptions. Define any changes to practice processes for iXBRL
accounts production and add job stage to Practice Management.
February/March 2011
Test your processes by filing a range of iXBRL accounts. Ensure
your staff are comfortable with online filing and the changed
processes. Communicate any changes and other requirements along
with iXBRL message to client.
April 2011 and beyond
File all your CT returns with iXBRL attachments. Review and
refine your processes to maximise efficiencies.
We are fully committed to supporting our customers during the
transition period. In addition to ensuring our software products
are fully compliant we are offering a series of training sessions
and have produced this helpful whitepaper iXBRL - Ten Things to do Now.
For further information please contact us on ixbrl@iris.co.uk.
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More information? Useful links...
HMRC
CIOT (Chartered Institute of Tax)
If you require any further assistance please contact us on
ixbrl@iris.co.uk
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