iXBRL in the UK - new rules for online filing

Since 31 March 2011 it is compulsory for businesses to file their company tax returns online and to make corporation tax payments electronically.  Tax computations and statutory accounts must be submitted in the Inline Extensible Business Reporting Language (iXBRL).

What is iXBRL?

Inline XBRL is a standardised computer readable language designed to make it easier for business information to be read and analysed by machines as well as by people.

To prepare for the new rules company management will need to consider:

  • Who, within the company, will be responsible for addressing the change management aspects of responding to the new regulation?
  • How many tax returns and company financial statements are affected by the change?
  • To what extent is existing tax software iXBRL enabled and what are existing providers of tax software doing to meet the new standard?
  • To what extent is existing software used in the production of company financial statements iXBRL enabled? 
  • Who will conduct the work to tag financial information in the tax return and the financial statements?
  • How will any judgements necessary in the tagging of the financial information be identified, considered and resolved?
  • What processes and controls over the use of iXBRL should be introduced?
  • What level of testing of the iXBRL tagging will be appropriate?
  • How might the iXBRL tagging of tax returns and company financial statements be harnessed to deliver benefits in the quality of information provided to management?

The electronic filing and use of iXBRL will be mandatory and unless companies take action to implement iXBRL they will not be in a position to file corporation tax returns when the rule is enacted.

How PwC can help

PwC has already developed and successfully piloted e-filing solutions for the submission of tax returns to HMRC. 

Our teams have extensive experience of advising on change programs prompted by new tax and financial regulation and have been closely linked with the development of XBRL. 

We have practical experience in tagging financial information using iXBRL and in structuring engagements to help clients with their tax compliance.