iXBRL-Changes to the Way Company Accounts are submitted to HM Revenue & Customs (HMRC) - what you need to know
iXBRL update February 2012
Further to the paragraph below entitled ‘How much will this cost me’. Following a review of the time required to tag corporate accounts using the compulsory iXBRL (inline eXtensible Business Reporting Language) as required by HMRC, it has been decided that no additional cost will be levied on the company at this time.
Mandatory Company changes from April 2011
From 1 April 2011 all Company Accounts, Corporation Tax Returns and Tax Computations will have to be filed online using the new Inline extensible Business Reporting Language, commonly know as iXBRL.
What is iXBRL?
iXBRL is a universal computer language created by an international consortium, XBRL International Inc. Designed specifically for financial reporting, iXBRL can be read both manually and also electronically by HMRC, which will enable them to analyse and cross reference your accounts more efficiently.
How does this affect my Company?
We are not required to change to content, style or layout of your accounts and tax computations, these will be prepared for you in the same way as we currently prepare them. However from 1 April 2011 there is an additional requirement that they have the computer language embedded into them prior to submission to HMRC, known as ‘tagging’. To ensure that you are compliant with these new regulations, Marsland Nash Associates have invested heavily in the necessary software and provided staff training to ensure that all Accounts, Corporation Tax Returns and Tax Computations are correctly ‘tagged’ before submission to HMRC as appropriate, we will therefore take care of everything for you so you have nothing to do or worry about with regard to iXBRL.
How much will this cost me?
After test preparation of a number of cases, and also a review of industry press coverage on this issue, it is clear that it will now take a significant amount of additional time to finalise company accounts in order to make them iXBRL compliant. We at Marsland Nash Associates have therefore implemented a new service ‘iXBRL Plus’ to ensure our clients are fully comply with this new regulation, and to prevent you from incurring any penalties in this regard. As we operate a policy of ‘Fixed Fees’ in advance, we are happy to advise you that will provide our ‘iXBRL Plus’ service to you FREE OF CHARGE for your first year. Moving forward, after we have run the service for several months and have an exact idea of the costing involved for us of the additional work, we will communicate with you further on whether any extra fees will need to be charged for this additional service.
Do I need this service?
Yes, in order to comply with HMRC it will be compulsory for all accounts, tax computations and corporation tax returns to be tagged using iXBRL for submission.
Other accountants have absorbed the costs why don’t Marsland Nash Associates
Many other accountancy firms operate on a ‘Time & Fees basis’, and simply add up all the time the accountants and technicians spend on your business affairs, including all telephone calls to and from clients and all meetings irrespective of the time taken, and then apply an hourly rate to come up with your fee. So even though iXBRL will not be individually itemised on your bill, it will be included in the time taken to produce your accounts and tax work, you just won’t know what the cost is specifically.
Marsland Nash Associates unique policy of ‘Fixed Fees’ in advance rewards us by results not by the hour, we itemise the cost of each service your company requires in advance of us doing the work – so you see exactly what you are paying for, and there are no hidden extras. In addition, our clients are welcome to phone or email us for FREE incidental advice and assistance.
Further information
If you require more details on iXBRL please contact Simon Glendinning our iXBRL ‘Champion’, who will be more than happy to discuss it with you. You can contact Simon on his Direct Line 01626 323 872 or email him on [email protected]. In addition you can visit the HMRC website www.hmrc.gov.uk/ct/ct-online/file-return/switching...
