BringingXBRLtaxfilingtotheUK.pptVIP

Bringing XBRL tax filing to the UK Jeff Smith, Customer Contact, Online Services, Agenda Why XBRL? External review of HMRC Online Services. The Company Tax Return. XBRL progress to date. Next steps. Lessons learned. Why XBRL? HMRC first became aware of XBRL in 2001. What attracted us: vision of streamlining the end to end financial reporting process - linking business, accounting and tax software. access to data - rather than everything on paper. picking up an external initiative - origins within the financial community, not Government driven. possible data standard in a wider government context. External review of HMRC online services July 2005 - UK Government asked Lord Carter to advise on measures to increase the use of HMRC’s key online services, in order to ensure sustainable and efficient service delivery for taxpayers, while continuing to support compliance. March 2006 - UK Government accepts recommendations in full. Key recommendations (for XBRL): “All companies should be required to file their company tax returns online, using XBRL …….. for returns due after 31 March 2010.” “Our view is that HMRC should not require online submission of company tax returns until XBRL has been implemented and has bedded down.” “We also recommend that they [HMRC Companies House] should work towards providing a joint filing facility so that companies and their agents only have to submit the same information once.” Company Tax Return- scope for a simplerapproach Return form (CT600) Accounts Computations Need ALL three components to make up a valid return Complex information Difficult to put together Computations are complex Accounts figure of profit adjusted for tax purposes capital allowances depreciation etc Often 30 pages + Free format No standard layout Paper documents usually produced using specialised software information inaccessible no data flow to HMRC systems Accounts are currently paper based We require full accounts including Profit Loss Again all held