The mail-shot contains a new HMRC leaflet on the changes, which will require all company tax returns delivered after 31 March 2011 to be filed online, for accounting periods ending after 31 March 2010.
The leaflet explains how, after 31 March 2011, CT returns must be filed online in a specified data format (known as Inline XBRL or iXBRL). Companies will be able to file online either through commercially available software or by using HMRC’s own CT filing software, which is aimed at companies with less complex tax affairs.
As the leaflet explains, there is no need for companies to re-engineer their accounting processes to comply with the requirement to file online using iXBRL, as either HMRC’s CT filing software or their commercial software will do this for them.
Mark Holden, Director of HMRC’s Carter Programme, said:
“While March 2011 might seem a long way away, agents and businesses need to be thinking about these changes now, as they will affect accounting periods ending after 31 March next year.
“HMRC is hoping to release its CT filing software towards the end of this year. We’re also working closely with software developers, and a number of commercial products will be available to support the iXBRL standard from November 2009, with more to follow. This will mean the majority of companies who wish to familiarise themselves with filing online before it becomes compulsory will have the opportunity to do so.”
Notes to editors
1. There are two versions of the leaflet – one for agents, and one for companies. Copies are available by emailing marketing.online@hmrc.gsi.gov.uk. Media can request electronic copies by contacting the press office number below.
2. XBRL (short for eXtensible Business Reporting Language) is a computer readable format for financial data. It works by putting a tag on each piece of electronic data (text or numbers) within a document. Inline XBRL makes XBRL readable by humans. It guarantees that the layout and presentation of information looks the same for both the author and the person receiving it, whether it is being viewed online or as a printout.
3. XBRL provides major benefits in the preparation, analysis, re-presentation and communication of business information. It also offers cost savings through greater efficiency, improved accuracy and reliability to all those involved in supplying or using financial data – long term these are expected to far outweigh any initial development/set-up costs. It is based on XML (EXtensible Markup Language) which is, in computing terms, a mature standard, and a proven technology that has been in use for many years.
4. Lord Carter of Coles published his review of HMRC’s Online Services in March 2006. One of the recommendations coming out of that review was that all companies should be required to file their company tax returns online. The Government accepted the recommendations, which HMRC is now implementing, and as part of this companies must file their tax returns online from April 2011.
Issued by HM Revenue & Customs Press Office
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