Corporation Tax – transition to online filing
The introduction of mandatory online filing of company tax returns begins on 1 April 2011. This change affects all company tax returns with accounting periods ending after 31 March 2010 that file returns after 31 March 2011. Thereafter all company tax returns must be filed online with all key data properly ‘tagged’ using Inline XBRL (iXBRL).
In response to concerns about this long trailed but now imminent change, HMRC have published new guidance. This is intended to address key concerns and uncertainties which businesses may have about the transition to online filing.
HMRC have stated in their guidance that they expect businesses ‘to make a reasonable attempt to comply with Corporation Tax online filing, including iXBRL tagging. But they understand that it is new and some people won’t get everything perfect from day one. HMRC will be reasonable about difficulties and mistakes.’
Specifically HMRC comment on the:
Level and accuracy of the iXBRL tagging – HMRC will not reject any return where businesses have made a reasonable attempt to comply with the iXBRL requirement.
Late software delivery problems – HMRC will not enforce any late submission penalties where late software delivery or other IT issues have caused the delay, and businesses have notified them of this reason for late submission.
Companies and organisations that are still submitting paper returns are advised to expeditiously familiarise themselves with the available online filing options which include HMRC’s own software as well as commercial software.