Companies Making Mistakes With iXBRL Tax Returns

New figures from HM Revenue and Customs have revealed that a third of UK businesses failed to submit their corporate tax returns in April using new iXBRL technology.

iXBRL (in-line extensible Business Reporting language) is a new computer tagging language which was introduced by HMRC at the start of April in an attempt to make it easier to compare financial information.

Use of the technology for corporate tax returns was made compulsory on April 1. However, HMRC claims that 22,000 of the 66,513 returns made during that month required re-submission.

Phill Robinson, CEO of IRIS Accountancy Solutions, which provides iXBRL software, said: “The fact is that there are still huge numbers of businesses that have not provisioned properly for the introduction of iXBRL, with many choosing to file their April 2011 reports early to avoid using the new format.”

“However, businesses really do need to get up to speed with the new standard as soon as possible. The mandation date may have passed but the issue of iXBRL has not gone away.”

“With as little as seven per cent of companies having an April year end, the real impact of iXBRL will be seen in the coming months,” he added.