SMALL CHARITIES will not have to submit company tax returns in a new technology format as HM Revenue & Customs is unable to supply free software.
From 1 April 2011 all company tax (CT) returns must be submitted in iXBRL (inline eXtensible Business Reporting Language), a technology format designed to make comparison of financial reports easier.
HMRC has provided an assortment of free iXBRL software for smaller companies to submit tax calculations, company tax returns and accounts.
However, a statement from HMRC said it recognises accounting principles applicable to smaller charities, with total income of less than £6.5m, means the free template provided may not be “suitable”.
HMRC has said it will allow small charities to continue filing CT in pdf format, however tax calculations will need to be in iXBRL format as free software is available.
HMRC has also published guidance for smaller charities on how to complete tax returns online and in iXBRL format.
The guidance can be found at the HMRC website.
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