HM Revenue & Customs (HMRC) are reminding limited companies and sole traders of impending changes to corporation tax.
The changes mean small businesses including contractors and freelancers need to file all tax returns online after the end of March 2011, for accounting periods ending after 31 March 2010. From April, 2011, all Corporation Tax returns must be filed online in XML and the accounts in a specified data format (known as Inline XBRL or iXBRL). In a bid to help firms familiarise themselves with the new portal which will be used to file the tax returns, HMRC are hoping to release Corporation Tax Software by the end of the year.
A leaflet detailing these changes is being sent to half a million companies and tax agents. Companies will be able to file online either through commercially available software or by using HMRC’s own Corporation Tax filing software, which is aimed at companies with less complex tax affairs. Director of HMRC’s Carter Programme Mark Holden remarked: “We’re working closely with software developers, and a number of commercial products will be available to support the iExtensible Business Reporting Language standard from November 2009, with more to follow.”
As the leaflet explains, there is no need for companies to re-engineer their accounting processes to comply with the requirement to file online using iXBRL, as either HMRC’s Corporation Tax filing software or their commercial software will do this for them.
Many thanks to Alison@Keytime who also added that from 2011, there will be a joint filing initiative between Companies House and HMRC.
If you would like support running your own limited company call ICS free on 0800 195 3750.
The information in this article is incorrect.
HMRC require CT returns to be filed on line in XML format from November 2009
From April 2011 HMRC require CT returns in XML format PLUS accounts in iXBRL format (rather than pdf as is at the moment). It is true that HMRC are releasing their own filing software, although it is very limitied in its scope and capability.
From 2011 there is to be joint filing initiative between Companies House and HMRC