Tax software for tax returns, statutory accounts, practice management and tax consultancy

iXBRL we're ready. Are you?

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.

Data transfer 

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?

November 2009

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.


April 2011

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.


April 2013

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.



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.

More information? Useful links...

HMRC

CIOT (Chartered Institute of Tax)

 

If you require any further assistance please contact us on ixbrl@iris.co.uk

 

iXBRL - what you need to do now
 

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