Step closer to single upload for company accounts

The first step to allow companies to file their accounts and tax return in a single session over the internet has been taken, in a move designed to help small businesses.



HM Revenue & Customs and Companies House said the work to align their filing services, as recommended by Lord Carter in 2006, would be complete by 2010.



By the summer of next year, Companies House will accept accounts filed online in a data format known as Inline Extensible Business Reporting Language, or iXBRL.



This is the same e-format which HMRC has said must be used for all company tax returns, including attachments, for accounting periods ending after 31 March 2010.



"The use of iXBRL will be mandatory when filing accounts with HMRC as part of a Company Tax Return for all accounts prepared under the Companies Act 2006," HMRC & Companies House officials said.



"Companies with less complex tax affairs will be able to use HMRC's software, provided free on their website, which will allow those companies to fully meet their HMRC filing obligations after mandation."



The alignment is designed to aid accountants, software developers and companies by reducing the time and expense of filing, such as having to produce similar information in different formats.



The officials added: "This alignment will also allow HMRC and Companies House to work together towards creating an environment using iXBRL that will enable companies to make a single online transmission over the internet for a Company Tax Return and accounts for the public record."