iXBRL FOR CORPORATES
Whatever your current software solution, we want to keep you informed of any changes which may affect your business.
Until the servers at HMRC are updated in October, it will not be possible to finalise any Corporation Tax submission which show a profit.
STAY AHEAD OF THE GAME
You can however, get your ducks in a row by Pre-Validating for iXBRL. By test submitting to validate your iXBRL tagging you can alleviate any problems and correct any errors picked up by Digita Corporation Tax.
Once the validation process for your returns are complete you can send to your outbox - ready and waiting for HMRC’s October deadline.
Download our Pre-Validation Process document
See it in action by clicking the video opposite
Find out more about Digita Corporation Tax software
INLINE EXTENSIBLE BUSINESS REPORTING LANGUAGE
HMRC’s new legislation is that all CT returns (ie forms CT 600, computations and entity accounts) for accounting periods ending after 31st March 2010 and submitted after 31st March 2011, must be filed online, through the Government Gateway, in a special format using the Inline eXtensible Business Reporting Language.
- HMRC’s strategic solution for accounts and CT computations
- Single document combines human readable information and computer readable data
- Preserves all presentation, branding and terminology and HMRC sees exactly what companies and agents send
Paper filing will become obsolete after 31st March 2011 and from this date, companies will also be required to make their CT and related payments electronically.
This will allow HMRC to process the information without re-keying and is intended to ease the process of preparing a Corporate Tax filing by generating greater efficiencies in-house as well as easier compliance. This is a major shift in the compliance process, in the gathering of information and in the use of IT and demands the attention of all those involved.
Anyone submitting statutory CT returns, computations and the associated legal entity accounts will need to review their methods and identify the right approach to going online and ensure that they have the right iXBRL software product or service to support their chosen strategy.
INTEGRATED SOLUTIONS - THE LONG-TERM IDEAL
Accountants have a choice between short-term fixes in the form of a conversion tool and the long-term and most efficient option of a fully integrated end-to-end solution capable of dealing with the full tagging requirements in 2013.
The sheer efficiency of automatic data exchange in an integrated accounts production and corporation tax system will reduce iXBRL associated costs and provide a positive return on investment within 2-3 years, roughly coinciding with the end of the soft landing period.
In practice, this means that the Accounts Production system will create the Statutory Accounts and post the information into the Corporate Tax Compliance system ready for Tax Adjustments and the finalised Corporate Tax Submission which will then electronically file the CT600, Tax Computation and Statutory Accounts with HMRC.
The benefits of integration are well documented in terms of efficiency gains and increased productivity and as with the introduction of any new regime, automation will significantly reduce the cost of compliance. Errors are reduced through the links between systems and review time can be reduced as the system offers the practitioner certainty over data exchange. The time taken to input data is also reduced and time can be saved on printing.
Need to know more?
Interested in Digita iXBRL software solutions? Why not book a personal demo or contact us for more details.
Alternatively, speak to one of our consultants on 08450 180 907, or feel free to ask a question.
Click here to find out more about our iXBRL Solutions.
Click here to find out more about our iXBRL Conversion Tool.