HMRC U-turns on decision to impose iXBRL full tagging requirements from 2013.
HM REVENUE & CUSTOMS has backed down on new iXBRL full tagging requirements, expected to be imposed from 1 April 2013.
In a statement the taxman announced it would not increase the level of detail needed to submit online corporate tax returns and statutory accounts as it had originally planned.
Since 1 April 2011, all UK companies have been obliged to iXBRL-tag their statutory accounts and corporate tax computations, in order to comply with HMRC’s ‘minimum tagging requirement’. It was understood that a new ‘full tagging requirement’ would be imposed from 1 April 2013. This week, however, HMRC confirmed that there will be no significant increase in tagging requirements in 2013, and no major future changes without consultation.
Donald Drysdale, assistant tax director at ICAS, said: “HMRC’s substantial climb-down in not going for full tagging is to be welcomed, and it shows that they have listened to representations. However, it still doesn’t go far enough to relieve the admin burden it already places on companies. We still feel that the obligation to file in iXBRL should be removed from small companies.”
ICAS opposed mandatory iXBRL-based corporation tax online filing when it was first recommended in 2006. The Institute was instrumental in persuading HMRC to establish a working group (involving representatives of the Government, the software industry and tax agents bodies) to examine the practical issues involved in implementing iXBRL.
ICAS has continued to oppose the imposition of XBRL, particularly on smaller companies for whom the cost and administrative burdens are disproportionate. Previously ICAS warned that iXBRL should not have been introduced without an appropriate cost/benefit impact assessment.
Indications from HMRC are that they are making a slow start in gaining any practical advantage from the iXBRL data they’ve received to date, but they are gradually gearing up to do so.
ICAS is in ongoing consultation with HMRC. Members are invited offer feedback to ICAS direct as part of the consultation.