- Service: Tax, Corporate Tax
- Type: Business and industry issue
- Date: 07/10/2010
HMRC will require UK companies to submit both Corporate Tax returns and entity accounts online in the iXBRL electronic format for accounting periods ending after 31 March 2010. So a company with a 30 June 2010 year-end will need to file company accounts and Corporate Tax returns in an iXBRL format by 30 June 2011.
What's on your Mind?
- Tax software vendors are already working hard to ensure that their applications can produce tax computations in the iXBRL format, but the conversion of entity accounts, which are produced outside of these engines, remain a problem for most
- Most companies manually produce their accounts using desktop applications such as MS Word or MS Excel. To comply with this deadline, companies will need to adapt their in-house accounts preparation processes and implement technology capable of producing company accounts in the iXBRL format
- HMRC have stated that if organisations are unable to file both CT computations and company accounts in the prescribed format online, then HMRC will simply reject the whole submission
- Unfortunately there are very few readily available software packages in the UK market specifically designed to produce company accounts in the iXBRL format while also addressing the detailed technical requirements which need to be adhered to, in order to pass the HMRC Government Gateway
- Furthermore, most tools that are or will become available are still in development or are limited to users of specific applications
Bringing you Peace of Mind
- KPMG XME is an iXBRL conversion tool which converts both MS Word and MS Excel documents into the iXBRL format required for HMRC submissions. XME has received recognition from HMRC
- We can provide a full, end to end, software strategy to deal with financial reporting overall (including XBRL conversion and tagging)
- As part of our service we can provide 'Health/sense checks' on complete filing to ensure that tags do not distort or contradict the information between taxonomies or in context of the accounts and tax return
- Our XME tool also has a test submit feature, which allows you to test the file by submitting a dummy file to the HMRC Government Gateway. If any incorrect tagging is found, the Gateway will report this back to you directly through XME, to help ensure you pass the Gateway when you submit your actual accounts
What's in it for you?
Using XME has the following benefits:
- Companies don't need to significantly change existing processes since the tagging and conversion process is completed using pre-existing MS Word documents and/or MS Excel workbooks
- Saves considerable time and effort as you can pre-tag accounts templates, which can then be re-used by multiple entities to produce/prepare their accounts
- Helps promote an efficient accounts preparation process giving users the ideal opportunity to revamp their process and/or helps provide a robust platform to support their process with minimal disruption to the business
- Minimal disruption caused to internal IT department as our tool does not require complicated set-up or database servers and is not dependent on any other application
- Automated roll-forward - XME remembers the tagging information from prior years, helping to accelerate the tagging process for year
- KPMG supported - KPMG has over 100 people in their technology software team supporting a number of well known accounting and tax software products. All XME users will have access to a support line and will be given IT updates to ensure ongoing compliance with HMRC requirements
- XME is competitively priced to ensure minimal ongoing cost for companies. Additional implementation support can be agreed with us separately and will be tailored to your own requirements and aptitude
- KPMG's tool, XME, is the only tool to have received recognition from HMRC out of the Big Four
- Large FTSE client with 100+ legal entities needed to ensure they were XBRL compliant. KPMG helped to standardise accounting templates, adjust processes, implemented XME, trained finance dept and successfully tested submissions to Government Gateway
KPMG in the UK
020 7311 2816
KPMG's XBRL Mapping Engine (XME) software allows conversion of accounts from MS Word or Excel into iXBRL. KPMG is the only Big 4 firm with their own HMRC accredited solution.
KPMG in the UK has authored a guide to the online e-filing language, XBRL, for the Institute of Chartered Accountants in England and Wales' IT Faculty and Tax Faculty. The eight page guide includes; an outline what XBRL is all about, what the potential benefits and issues arising from the new format are and advice what to do now.
HM Revenue and Customs (HMRC) has made it compulsory for all organisations filing CT600s, regardless of size or ownership status, to file both entity accounts and tax returns for accounting periods ending after 31 March 2010 online in an electronic format called iXBRL.
From March 2010, companies in the UK have to file their accounts and tax returns online in the electronic format known as extensible business reporting language (XBRL). Bivek Sharma, partner, compliance and technology at KPMG in the UK comments on whether it is it right to categorise XBRL as a "must do" rather than a "must have"?