A leading local firm of chartered accountants and chartered tax advisers is warning about the impending change for any organisation that files company tax returns.
Robinson Reed Layton, with offices in Truro, are highlighting that from 1st April 2011 it will be mandatory for organisations to submit their company tax returns online, and that the company accounts which accompany the return must be in iXBRL format for any accounting period ending after 31 March 2010.
Polly Tregaskes, Chartered Tax Adviser for Robinson Reed Layton, explains the reasons for the change:
“The use of iXBRL will increase efficiency for HMRC and provide an opportunity for high quality analysis of business information. However, it is the software producers and their end users that have to carry the burden of producing iXBRL accounts in order to benefit HMRC.”
Polly continued, “The new requirement will most affect unrepresented companies who currently prepare their accounts in-house using Word or Excel and/or those who still prepare their corporation tax return and computations on paper. These companies may find that they need professional help to meet their filing obligations.”
Producing accounts and corporation tax computations in iXBRL format is not something that can be done without the use of commercially available software or a conversion tool and company directors and accountants will have to use different software or a conversion tool in order to comply.
Whilst HMRC provides its own free software for online filing, it has limited functionality and is aimed at smaller companies and organisations with less complex tax affairs.
If you are confused by the jargon, or you have not yet considered how you are going to file online, and would like assistance in finding a solution, then Robinson Reed Layton can help.
They offer a comprehensive range of services which will include accounts production in iXBRL format, corporation tax returns and computations in iXBRL format, an online filing facility and can also assist in the conversion of accounts prepared in Word or Excel into iXBRL format.
XBRL involves the application of computer-readable tags to business data. The XBRL format being used in the UK for company reporting is known as Inline XBRL or iXBRL. This consists of a human-readable report, which has XBRL tags embedded in it.
The human readable text is effectively HTML – the basic language of the web. A company’s financial statements, which have been converted into iXBRL, may appear unchanged to a human reader, but they will contain tags, usually hidden to the eye, which enables the data to be processed automatically by software.
For further information on how to comply with the new regulations then please contact Polly Tregaskes at Robinson Reed Layton on 01872 276116 or visit www.rrl-truro.co.uk
[PHOTO: Polly Tregaskes]
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