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SOUTH WEST COMPANIES MUST RESPOND TO THE TAXMAN’S “TICKING TIME-BOMB”

The taxman is demanding online accounts and corporation tax returns, using XBRL technology

South West companies face rejection of their annual accounts and corporation tax submissions if they do not switch to online filing using a special electronic format.

From next April, the start of the new tax year, HMRC demands that all businesses submit their corporation tax returns and company statutory accounts in XBRL electronic format.

According to Fleur Oswald, Director of Audit at South West accountancy firm Bishop Fleming:  “Every company must review their internal systems to ensure that they can produce the required XBRL format.

 “If they fail to act, their submissions will be rejected – leading to penalties”, said Ms Oswald.

XBRL allows the taxman (HMRC) to store information in a database format, providing the ability to analyse and manipulate data.

“We suspect that this will prompt the taxman to raise more questions to individual companies”, said Bishop Fleming‘s Fleur Oswald.

“Any company preparing its statutory accounts with their own accounting software should check with their software provider on whether this is XBRL compliant.  The many companies that rely on manual production of statutory accounts using MS Word, Excel, or similar applications should seek urgent advice”, she urged.
 
“This is a serious change in demand from the taxman, but most companies remain oblivious to that demand – and to the potential penalties”, warned Fleur Oswald.

 
ENDS 19th July 2010

For further information please contact Fleur Oswald on 07799-861819 or visit the Bishop Fleming website www.bishopfleming.co.uk