Posted: 22 July 2009
Issue: Online only
Categories: Update, News, Tax adviser, Admin, Online, CT, iXBRL

'Move likely to be costly and problematic'

The Chartered Institute of Taxation has expressed concerns about the progress towards compulsory filing online of company accounts in iXBRL format.

HMRC are currently consulting on the legislation to mandate it in April 2011, and the CIOT plans to call for a deferral or an embargo on penalties for the first year.

‘Some accounting periods for which statutory accounts will need to be submitted in iXBRL format… have already commenced, yet there is virtually no accounting software available,’ said the institute’s tax policy director, John Whiting.

The Revenue has not published a full cost benefit analysis of its proposals, but Mr Whiting suggested that ‘the changeover is likely to be costly and problematic, especially in the first year’.

He added: ‘Most businesses and tax advisers would like to have a dry run, submitting accounts and returns online for a year before mandation is implemented, to ensure that the system is robust. 

‘However, due to the long lead time necessary to implement new accounting systems, time to do this has all but run out.’

The CIOT has expressed disappointment that the HMRC plan appears to be going ahead before there has been any agreement with Companies House.

This means the added burden for companies of meeting a higher standard of filing accounts for HMRC than for Companies House, said the trade body, which went on to remark that accounting software companies and preparers of accounts are not fully prepared for the impending changes.

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