A blog covering technology written by Accountancy Age reporter Rachael Singh
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10 Feb 2011 Rachael Singh
So exchequer secretary to the Treasury David Gauke has declared 1 April D-day for paper filing of corporation tax.
Six of the largest accountancy firms grouped together and wrote a letter to Gauke requesting a six month delay on the 1 April deadline. HMRC mandated all corporation tax must be filed online using a new technology called iXBRL by this date.
But despite almost the entire accountancy profession calling on the government to push back the deadline, the powers that be have rejected their appeal.
By all accounts, delaying iXBRL would have been a relatively easy task for the government and would have garnered a huge amount of goodwill from the accountancy profession by doing so. However, as astounding as it may be, Gauke has made it clear he is sticking by the previously set deadline at all costs.
The institutes are concerned tax advisers will have difficulty understanding, implementing, and purchasing new software needed for this deadline. Concerns have also been raised that the taxman will be under resourced for the flood of advisers with iXBRL questions post 1 April.
Although the government set the deadline date about five years ago, I don't see its fascination with sticking to it - regardless of the consequences.
It seems the government is simply hoping iXBRL and filing will come together at the last minute, and although there could be hiccups, there's nothing too drastic to worry about - therefore the deadline should go as planned.
Personally I think the institutes should start working on their "I told you so" routine, so at least that's ready by 1 April.
Visitor comments
I fear that people are blowing the issue out of proportion - complying with iXBRL does NOT require ripping out non-compliant accounting software or anything so drastic. You just need to convert your accounts into the correct format before you file them; if your supplier does not offer the service then find a service that does.
With our iXBRL tagging solution, File4, for example, a user of any accounting system simply has to upload their accounts in Word format to a website and File4 does the tagging intelligently, outputting the finished version for submission. No software to install or integrate, and no great need for intervention or training. We will have people on hand who can help clients through the process to make it as painless as possible.
So the decision has been made - let's stop fooling around (sorry but the timing is perfect) and focus on making sure everyone's prepared for 1st April.
Posted by: David Turner , 10 Feb 2011
Look. As your article outlines, we've all known this was coming, and for FIVE years!! For the industry to start asking for deferments now is just silly. Good on the government for sticking to its guns and going through with this.
There will be pain. This is the biggest structural change to HMRC since the introduction of self-assessment, so it's inevitable.
A whole industry has sprung up, iXBRL Managed Taggers, who can work with companies and the profession to assist with the transition to iXBRL filing. This is exactly what happened in the USA too so what's the big deal?
If only the industry put as much effort into being ready as it did into whining and lobbying, maybe it would be ready for April 1st!!
Posted by: John White , 10 Feb 2011
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