Small organisations
HMRC has provided its own software for users with single use; this is available free of charge. Before you start you will need:
- Adobe Reader software version 9 or later. If you have an older version you will have to download the latest version (free of charge) from www.adobe.com;
- the same information as you would when completing a paper company return.
The guide does not give instructions, but does provide a link to a site containing instructions. You can download the software via the link here.
It is suitable if you are dealing with a return for a small company or organisation with straightforward affairs. It allows you to submit:
- company accounts using an accounts template or by attaching accounts in the correct format;
- computations using a computations template or by attaching computations in the correct format;
- CT 600 (Short) return form;
- supplementary page CT600A (Loans to participators by close companies);
- supplementary page CT600E (Charities and Community Amateur Sports Clubs);
- supplementary page CT660J (Disclosure of tax avoidance schemes).
Once you have downloaded the return, you do not have to remain online to complete it, but can save it and come back to it before you submit it.
This software comes together with on-screen help to guide you and help you identify errors as explained above.
HMRC has published a guide on Filing your Company Tax Return online - a beginner's guide. This guide contains information to help you submit your company tax return - form CT600, accounts and computations - online using the HM Revenue & Customs (HMRC) free corporation tax online filing software.
Businesss or practices with several filings
If you currently prepare accounts in Excel or Word, you can continue to do so, but add an extra task. You can convert a Word document into an iXBRL file with the help of ‘conversion’ or ‘tagging’ software.
Alternatively, you could obtain an iXBRL accounting product.
The third option is to outsource the iXBRL production; several providers will take your existing non-iXBRL accounts and convert them.
Businesses or practices already using accounts production software
If you are already using accounts production software, the provider will probably produce an iXBRL upgrade, but make sure that it will be ready in time. HMRC has issued a list of suppliers here and many major suppliers have absorbed the cost of developing the product.
Questions to ask
Points to be addressed immediately include:
- should we use HMRC’s free software? It is free, but there are faster products on the market and time is money. You will also have to perform the same exercise next year;
- do I just need a stop gap solution now and then I can view the market when all the software is available?
- should I consider filing early before 1 April, using the existing filing and payment options that I currently use?
- should we use a system as an add-on to our existing system? Again, this may be cumbersome, but may be more cost-effective;
- should we stick with our old system and outsource the tagging? This may have its dangers, if you do not know how reliable the contractor is;
- should we ‘take the plunge’ and invest in branded software? This is likely to have the greatest up-front costs, but if there is suitable support and training from the provider and regular updates, may be cheaper in the long run.
XBRL products are only now being developed and may change from year to year, as the versions are updated. Additionally there are changes to UK GAAP that will have to be accommodated. You will also have to review the work done, as before to ensure that the right judgments have been made in the preparation of the accounts. It is important that, whatever decision you make, it is right for you.
Inevitably, there will be a steep learning curve. iXBRL is mandatory, but HMRC has indicated that it will take a ‘light touch’ to filing for the first two years.
Will your chosen provider issues updates and is that included in the cost as the underlying technology (‘taxonomies’ - the tagging codes) change from year to year as does the tax legislation?
If you are considering outsourcing the work, is to someone competent and who works to the ethical standards that you require?
It is time to consider the options so that you can make the necessary arrangements in time to be ready before 1 April arrives.