The switch to iXBRL

Even though the deadline may seem like a long way off, there may be complications where companies produce their own accounts, so they need to be planning ahead now.

What does the change mean?

The change applies to all accounting periods after 31 March 2010 and means that at the time of filing, both Corporation Tax returns and company accounts will need to be delivered in iXBRL format. HMRC has already stated that failure to do so will result in the submission being rejected.

Who does it affect?

All UK registered companies will need to make the switch in time for the March 2011 - February 2012 filing deadlines. Clients will be unaffected if we already handle the filing of their Corporation Tax and company accounts, as our systems will be fully compliant with the new software requirements ahead of the deadline.

Tax software for the filing of Corporation Tax should be readily available; however, companies filing their own accounts using applications, such as MS Word and Excel, need to install new software to produce accounts in iXBRL format.

Although this may sound straightforward, there are two issues; firstly, there are very few software packages which can produce accounts in the required format for larger companies and, secondly, IT and accounts departments will need to undertake a thorough risk assessment before any system changes can be made. This will inevitably cost time and money.

Companies need to agree an early adoption strategy to ensure they don't get caught out. Our Business Services team is able to handle the filing of statutory accounts and the conversion of MS Word, Excel, or similar formats, into iXBRL. We can also advise clients looking to retain their accounts in-house on the best iXBRL packages available.