What the iXBRL..?!!
(Everything you didn’t realise you wanted
to know about HMRC’s CT Online
service…)
Chartered Accountan...
Today’s Themes
• Background to mandatory CT online filing
• What are XBRL and iXBRL?
• Rationale
• Software Solutions
• Wh...
Lord Carter’s 29 key recommendations
The universal electronic delivery of
business tax returns by 2012.
• SA – April 2008
...
CT Online – Headline Statistics – 30 Sept 2010
• 26,431 agents are registered to represent 1,489,817 CT
Organisations Onli...
Key date for Corporation Tax (CT)
1 April 2011
• all company tax returns for accounting periods ending on
or after 1 April...
• Internet banking
• Telephone banking
• Direct Debit
• Bank Giro
• Debit and credit card at www.billpayment.co.uk/hmrc
• ...
The Legal Background
• HMRC can require, by Notice, a company to deliver a Company Tax
Return by virtue of Part 11, Schedu...
Compulsory CT Online Filing
Will NOT change
• Who has to file a Company Tax return
• When the return has to be filed or th...
So, for Corporation Tax that means …
Company Tax Returns – comprising:
• CT600 + supplementary pages
(XML)
• Accounts* (iX...
What are XBRL and iXBRL?
eXtensible Business Reporting Language
XBRL -
• is a computer-readable data standard for financial
reporting statements
• ...
One Document – Two Purposes
Human Readable Computer Readable
Inline XBRL [iXBRL]
• HMRC’s strategic solution for accounts ...
How do I know what to tag?
• An important consideration if you are taking the ‘conversion’ approach
and doing it yourself ...
Tagging Requirements
• Full tagging for Accounts (UK GAAP and UK-IFRS) will be
required from April 2013
• Reduced tagging ...
Company‘s Accounts UK GAAP Taxonomy Minimum Tagging List
Turnover
Cost of sales
Gross Trading Profit
Stationery & Printing...
Company‘s Accounts UK GAAP Taxonomy Minimum Tagging List
Turnover
Cost of sales
Gross Trading Profit
Stationery & Printing...
Company‘s Accounts UK GAAP Taxonomy Minimum Tagging List
Turnover
Cost of sales
Gross Trading Profit
Stationery & Printing...
Company‘s Accounts UK GAAP Taxonomy Minimum Tagging List
Turnover
Cost of sales
Gross Trading Profit
Stationery & Printing...
Companies House & HMRC in unison
• Recognise that HMRC and Companies House deal with
similar customer groups.
• Format ali...
Why?
The Rationale Behind iXBRL
• Early identification and quick resolution of simple errors
• Apply risk parameters to
• desel...
Better data and smarter use
Company Tax Return – submitted online with accounts and CT comps in iXBRL
Human readable forma...
Solutions!
Software
• HMRC’s CT filing product is in place and operational
• For others, it will be key that they -
• identify the ri...
HMRC Recognition of Software
• HMRC does not ‘recommend’ or ‘approve’ but does have
‘test’ and ‘recognition’ processes
• S...
Currently Recognised Commercial Software
• 20 developers’ iXBRL products/services have been recognised
• 10 different ‘int...
HMRC’s CT Filing Product
• Available since 23 November 2009
• Extended in October 2010 to incorporate fields that
Companie...
So what should I be doing now?
• Thinking about the right option for your business
• Look at software options available or...
Last but by no means least…
Soft Landing
The key is working together - to make this work for all of us
• Help and support in the implementation phase
...
Any questions?
Thank you
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HMRC i xbrl presentation for chartered accountants ireland

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HMRC i xbrl presentation for chartered accountants ireland

  1. 1. What the iXBRL..?!! (Everything you didn’t realise you wanted to know about HMRC’s CT Online service…) Chartered Accountants Ireland 22nd November 2010
  2. 2. Today’s Themes • Background to mandatory CT online filing • What are XBRL and iXBRL? • Rationale • Software Solutions • What should businesses be doing now • Question & Answers
  3. 3. Lord Carter’s 29 key recommendations The universal electronic delivery of business tax returns by 2012. • SA – April 2008 • PAYE – April 2009 • VAT – April 2010 • CT – April 2011
  4. 4. CT Online – Headline Statistics – 30 Sept 2010 • 26,431 agents are registered to represent 1,489,817 CT Organisations Online • Paper Returns down 100K to 445k • Online Returns up 105k to 270k • Online percentage has increased from 14.5% to 37.8% Online Company Tax Returns Received in 2009/10 • HMRC Software 14.8% • Commercial Software 85.2%
  5. 5. Key date for Corporation Tax (CT) 1 April 2011 • all company tax returns for accounting periods ending on or after 1 April 2010, that are filed on or after 1 April 2011, must be filed online • accounts and computations must be filed in a specified data format known as Inline XBRL (iXBRL) • all Corporation Tax liabilities must be paid electronically
  6. 6. • Internet banking • Telephone banking • Direct Debit • Bank Giro • Debit and credit card at www.billpayment.co.uk/hmrc • Bankers’ Automated Clearing Services (BACS) Direct Credit • Clearing House Automated Payments System (CHAPS) How to pay electronically Use your bank/building society services and pay by:
  7. 7. The Legal Background • HMRC can require, by Notice, a company to deliver a Company Tax Return by virtue of Part 11, Schedule 18, Finance Act 1998 • The Regulations applicable to the electronic filing of company tax returns were made and laid before Parliament on 7 December 2009. Because they amend an existing Statutory Instrument, they’re not an easy read! • Much more digestible are the HMRC Commissioners’ Directions, which can be found on HMRC's website.
  8. 8. Compulsory CT Online Filing Will NOT change • Who has to file a Company Tax return • When the return has to be filed or the tax paid • What is legally required to be filed as part of a company tax return Will change ONLY how the return has to be filed - • Via the Internet with the ‘statutory accounts’ and Corporation Tax computations in iXBRL format
  9. 9. So, for Corporation Tax that means … Company Tax Returns – comprising: • CT600 + supplementary pages (XML) • Accounts* (iXBRL) • Tax Computations (iXBRL) That are delivered on or after 1 April 2011 for accounting periods ending on or after 1 April 2010 Must be delivered online * These are the ‘statutory’ accounts that Companies Act 2006 (and other legislation) requires all individual companies to prepare CT600 Form Statutory Accounts Computation CT600 Form Statutory Accounts Computation
  10. 10. What are XBRL and iXBRL?
  11. 11. eXtensible Business Reporting Language XBRL - • is a computer-readable data standard for financial reporting statements • is around 10 years old - but based on XML which has been around for even longer • like “bar-coding” for financial information • uses defined ‘tags’ to describe financial information
  12. 12. One Document – Two Purposes Human Readable Computer Readable Inline XBRL [iXBRL] • HMRC’s strategic solution for accounts and CT computations • Single document combines “human-readable” information and “computer-readable” data • Preserves all presentation: branding, formatting, terminology. HMRC sees exactly what companies and agents send • Allows smarter data handling by HMRC and so better, risk focused, interactions with customers
  13. 13. How do I know what to tag? • An important consideration if you are taking the ‘conversion’ approach and doing it yourself but users of ‘final accounts’ software may also have to do some tagging • iXBRL “tags” come the from relevant taxonomies. • UK GAAP or UK IFRS with extensions if relevant – for accounts • UK Common Data (integrated into 2009 versions of UK GAAP and UK-IFRS) • CT Computational - for tax computations • Minimum tagging lists at the start Taxonomy Full List Minimum Tagging Lists UK GAAP 2009 5,292 + Charities 1,253 UK-IFRS 2009 3,820 + Banks etc 1,629 + Banks etc UK Common Data 1,028 All relevant tags must be used CT Computational 4,164 1,207
  14. 14. Tagging Requirements • Full tagging for Accounts (UK GAAP and UK-IFRS) will be required from April 2013 • Reduced tagging for CT Computations will continue indefinitely – only changes will be to reflect new legislation Software will help you through the process MUST Tag items if used in your accounts or computations and appearing on the minimum tagging lists CAN Choose to tag items used in your accounts or computations and appearing in the full tagging list DO NOT Tag items in the minimum tagging lists if they’re not used in your accounts or computations
  15. 15. Company‘s Accounts UK GAAP Taxonomy Minimum Tagging List Turnover Cost of sales Gross Trading Profit Stationery & Printing Interest Receivable Lawsuit Provision Turnover Cost of sales Gross Trading Profit Stationery & Printing Interest Receivable Bad Debt Provision Turnover Cost of sales Gross Trading Profit Bad Debt Provision 1 2 3 1 2 3 1 2 3 198 199 200 5,290 5,291 5,292 1,251 1,252 1,253 … … … … … … … … … … … Tagging Requirements
  16. 16. Company‘s Accounts UK GAAP Taxonomy Minimum Tagging List Turnover Cost of sales Gross Trading Profit Stationery & Printing Interest Receivable Lawsuit Provision Turnover Cost of sales Gross Trading Profit Stationery & Printing Interest Receivable Bad Debt Provision Turnover Cost of sales Gross Trading Profit Bad Debt Provision 1 2 3 1 2 3 1 2 3 198 199 200 5,290 5,291 5,292 1,251 1,252 1,253 … … … … … … … … … … … Tagging Requirements
  17. 17. Company‘s Accounts UK GAAP Taxonomy Minimum Tagging List Turnover Cost of sales Gross Trading Profit Stationery & Printing Interest Receivable Lawsuit Provision Turnover Cost of sales Gross Trading Profit Stationery & Printing Interest Receivable Bad Debt Provision Turnover Cost of sales Gross Trading Profit Bad Debt Provision 1 2 3 1 2 3 1 2 3 198 199 200 5,290 5,291 5,292 1,251 1,252 1,253 … … … … … … … … … … … Tagging Requirements
  18. 18. Company‘s Accounts UK GAAP Taxonomy Minimum Tagging List Turnover Cost of sales Gross Trading Profit Stationery & Printing Interest Receivable Lawsuit Provision Turnover Cost of sales Gross Trading Profit Stationery & Printing Interest Receivable Bad Debt Provision Turnover Cost of sales Gross Trading Profit Bad Debt Provision 1 2 3 1 2 3 1 2 3 198 199 200 5,290 5,291 5,292 1,251 1,252 1,253 … … … … … … … … … … … Tagging Requirements
  19. 19. Companies House & HMRC in unison • Recognise that HMRC and Companies House deal with similar customer groups. • Format alignment by both organisations will avoid producing similar information in different formats. • HMRC’s iXBRL channel launched on 23 November 2009. • Companies House launched its iXBRL service (initially for unaudited accounts for small companies – full or abbreviated) in August 2010 – full set by Summer 2011. • iXBRL will be mandatory for HMRC but voluntary for Companies House. • HMRC and Companies House now offer a template-based ‘Joint Filing’ software tool, suitable for smaller companies
  20. 20. Why?
  21. 21. The Rationale Behind iXBRL • Early identification and quick resolution of simple errors • Apply risk parameters to • deselect low risk cases • flag items outside ‘norms’ • Better targeted questions during interventions • Continually develop HMRC’s picture of risks and norms • Better informed (tax) policy making
  22. 22. Better data and smarter use Company Tax Return – submitted online with accounts and CT comps in iXBRL Human readable format Holding Database Risk Mart Analysis capability computer readable format Define /develop risk parameters Risks identified Policy making Intervention Resolution Inspector Other databases CT CompsAccounts CT600
  23. 23. Solutions!
  24. 24. Software • HMRC’s CT filing product is in place and operational • For others, it will be key that they - • identify the right approach to going online: Final Accounts Production [FAP software] or conversion tools or a ‘managed service’ • get the right software product or service to support their chosen approach • Bulk of the tax computations products are available now • Bulk of the accounts production products will be released in Autumn 2010 – 4 already HMRC-recognised
  25. 25. HMRC Recognition of Software • HMRC does not ‘recommend’ or ‘approve’ but does have ‘test’ and ‘recognition’ processes • Software developers can test that their products will work with HMRC’s systems • ‘Recognition’ process currently • Based on 3 sets of ‘standard’ accounts and CT comps provided by HMRC • Developers use their product to produce and submit iXBRL versions • HMRC review to ensure completeness
  26. 26. Currently Recognised Commercial Software • 20 developers’ iXBRL products/services have been recognised • 10 different ‘integrated’ software packages • 5 managed tagging services (i.e. outsourcing) • 9 conversion tools • 17 developers are able to submit iXBRL documents generated by other software (including some those above) • www.hmrc.gov.uk/efiling/ctsoft_dev.htm will give latest position with recognition
  27. 27. HMRC’s CT Filing Product • Available since 23 November 2009 • Extended in October 2010 to incorporate fields that Companies House need and will be the basis for ‘Joint Filing’ • Based on CT600(Short) + Supp Pages A, E and J • Intended for smaller companies with less complex affairs • Has to be downloaded for each company for each AP • Previous year’s figures do not carry forward • Templates for Accounts and CT comps ‘impose’ a format • Feedback from agents and their rep bodies suggests it’s unlikely to be used by them except for, e.g., pro bono work for clubs, small charities, etc.
  28. 28. So what should I be doing now? • Thinking about the right option for your business • Look at software options available or coming to market If going the ‘conversion’ route for accounts – suggest • Set up a joint project between Finance and Tax departments • Review current processes including use of Word/Excel templates • Think tagging options – in-house or outsourced • Create and use templates for in-house use • Tagging is a task for an accountant NOT an IT person • Experience so far is that tagging is easier/quicker than companies had expected
  29. 29. Last but by no means least…
  30. 30. Soft Landing The key is working together - to make this work for all of us • Help and support in the implementation phase • Appreciate not everyone will get it exactly right first time • Particularly sympathetic approach to penalties in first two years but flexibility beyond that • Reasonable Excuse • Reasonable Care • Working with you to get it right
  31. 31. Any questions? Thank you

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