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"From 1st April
2011, for any accounting period ending after 31st March
2010, all Company Tax Returns must be filled online.
As well as this, companies must file accounts and
computations in a set format - Inline eXtensible Business
Reporting Language (iXBRL)"
HM
Revenue & Customs
Why do we need iXBRL?
At present online filing
of Corporation Tax is a combination of XML (Extensible Mark-up
Language) and PDF (Portable Document Format). Normally, the tax
return (CT600)and supplementary pages are submitted to the HMRC
using XML whilst the accounts and the tax computation are attached
to the main return as PDF documents. In addition, these attachments
contain the information required to interpret the CT600 which only
shows summary results and calculations. Whilst most of us can read
pdf files, quick computer recognition and interpretation is
difficult. The major problem lies in extracting data from the PDF as
the information is not sufficiently structured in the underlying
code, and each document that the HMRC receives will be different.
This has subsequently meant that the HMRC has had to find a solution
to extract information without compromising the ability of users to
read it either electronically or in its printed form. This is where
the new concept iXBRL (Inline Extensible Business Reporting
Language) forms a bridge between HTML and XBRL to enable XBRL
documents to be read by a tax inspector in a regular web browser.
How will
iXBRL affect your company?
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HMRC will
not accept your company accounts in pdf from April
2011. They will require the Accounts and Tax
Computation to be in iXBRL |
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Without a
product which shields you from the complexity of
iXBRL, preparing Accounts in the new format is a
significant technical challenge |
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I If you
prepare Accounts in Word, Excel you need to consider
how these can be transformed into iXBRL |
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For the
first 2 years, HMRC has announced a 'Soft Landing'
period, where companies that submit in iXBRL with
what HMRC adjudge to be “a best effort” will be
excused penalties even if incorrect tagging is
applied. HMRC does not consider anything other than
an iXBRL submission to be appropriate after this
date |
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You might
want to consider a standard approach to preparing
Accounts if you have different documents. Creating
iXBRL tagged Accounts templates allows documents
made in the first year to be reused for subsequent
years |
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HMRC and
Companies House are moving towards a Joint Filing
initiative. At present Company House only accept
e-filing of accounts for limited circumstances using
a variety of format, however from July 2010 you will
be able to submit unaudited accounts in the same
format as HMRC |
Software
solutions available
Sapphire Systems
has teamed up with leading iXBRL software house Arkk
Solutions to offer bespoke iXBRL solutions for both SAP
Business One and SunSystems.
iXBRL SAP Business One and SunSystems is a perfect solution
for businesses, with no new hard ware or upgrades required,
with Sapphire’s solutions all you need is Microsoft Office
2007 or later. The interactive mapping software is
downloadable as an Office Add-In and doesn’t require a
server for installation, as the original Excel or Word File
you produce are used to automatically generate iXBRL.
Our software provides a pragmatic solution to a fast
approaching deadline.
The benefits of using Sapphire Systems' iXBRL software
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Keep
your current processes - Lightweight IT solution
that allows you to keep your existing processes to
produce iXBRL from Microsoft Office alongside you
Vision installation. |
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Zero
Security Risk - Our architects have developed a
solution that is scalable and secure. None of your
data ever appears in our web browsers or on our
servers so we never know what your accounts look
like before you file them with HMRC. If a colleague
needs to check your document, it’s easy. They can
download the iXBRL Add-In and edit the document. Our
flexible approach allows accounts departments to
collaborate without complex licensing constraints. |
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iXBRL
complexity hidden from view - complexity hidden
from view - It probably isn’t your intention to
learn the iXBRL language, instead with our software
you see Microsoft Office. Document review and
validation features ensure compliance from Day One. |
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HMRC
Recognised - Arkk were one of the first
companies to pass the HMRC’s recognition tests for
filing iXBRL Accounts converted from Microsoft
Office applications |
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Expertise You Can Rely On - No IT or Accounts
department? Our consultants have gained years of
experience working at the “Big 4” specialising in
Accounts preparation. Fixed price assignments mean
we can work with you to get the work done and train
your people for following years. Cost effective
maintenance packages ensure that you’re always up to
date with the latest taxonomies for both HMRC and
Companies House filing. Our Support Services ensure
that help is available at your year end. Flexible
support packages allow you to choose when extra
support is important to you. |
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Return
On Investment - iXBRL files are reusable for
opportunities beyond the HMRC compliance deadline.
Publish the iXBRL on your website for analysts to
view, or consolidate all of your group’s files into
a central business intelligence database. Because
Inline Extensible Business Reporting Language
(iXBRL) is a common reporting language, the
opportunities for reuse will save you time and
effort in years to come. |
XBRL - Where did it come from?
Whilst the UK
Government is in the final process of its plans to implement
iXBRL filing of Company Accounts in 2011, the US SEC has
imposed mandatory filing in XBRL on about 500 companies. It
has been adopted by over 20 countries worldwide as the
standard for the exchange of financial reporting
information, yet the UK is the first country to have the
Inline (the i in iXBRL) flavour of XBRL.
TaxCalc
 When TaxCalc, the
UK’s number 1 Taxation software wanted to offer Microsoft
Excel iXBRL Accounts conversion to their 30,000 end users,
Arkk built a bespoke solution that allowed high throughput
and secure connectivity.
The introduction
of the solution ensured that TaxCalc’s users can file their
Accounts with HMRC 1 year before the filing deadline. For
TaxCalc the introduction of an out of the box solution to
compliment their existing product has allowed them to forget
about the complexities of iXBRL and has given their
customers peace of mind that the issue has been addressed.
“I would
consider Arkk to be the UK’s leading authority in iXBRL” Anne
Porter, Brand Director, TaxCalc
Back to Top |
+44 (0)20 7648 2000 
1st
October, Chartered Accountants’ Hall, Moorgate Place, London
