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.
|
 |
| |
 Read How
IRIS will help you
|
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?
|
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.
|
|
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.
|
|
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 IRIS will help - read about how
all IRIS, PTP and Drummohr products will be compliant with the
iXBRL standard
