iXBRL

It is now mandatory that all companies (with the exception of charities and some unincorporated associations and clubs) must file their CT600 tax returns on line.  All supporting documentation, including the financial statements, must also be filed online using inline Extensible Business Reporting Language (iXBRL).

So What is iXBRL?

XBRL is a globally accepted language for describing financial statements and transactions. At its core are a series of taxonomies, similar to dictionaries, that state the labels or tags that need to be applied to a document so that data can be understood by a computer system. Inline XBRL (iXBRL) is a format of this language that can also be read by people.
 
iXBRL is a new concept for most UK businesses. Tagging a CT600 (the company's tax return) is not too difficult but the tagging process for associated financial statements is an onerous task even for the simplest accounts. The minimum list of tags for UK GAAP financial statements exceeds 1,200. The full list, which will be mandated from April 2013, is over 5,000 tags.

HMRC will start to accumulate a rich database of electronic information in iXBRL format, covering all UK companies. They will be able to analyse companies across years, groups and sectors quickly and easily. Tax returns will need to be more accurate than ever, with explanations and disclosure more considered.

What are the options for filing your accounts?

1.Use an accounts production software that would produce iXBRL documents automatically.  However, you need to invest in such a software, invest in training your staff to acquire expertise in UK GAAP or IFRS and lose staff time in setting up and maintaining the relationships between account heads and UK GAAP/IFRS taxonomy labels.

2.Use an iXBRL tagging software.  However, you need to invest in (or rent) such a software, invest in training your staff to acquire expertise in using the software (several of these are complex) and expertise in UK GAAP or IFRS and lose staff time on a continuing basis in mapping line items in your statements with UK GAAP/IFRS taxonomy labels.

3.Get Plummer Parsons to do it for you.  Just let us have your statements (in whatever format you prepare them; we accept most formats).  We do everything and return to you the iXBRL documents for review and filing with HMRC.  You can review the iXBRL documents using any modern internet browser.