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iXBRL: The era of online filing begins on 1 April – but some businesses may have left it too late warns KPMG

  • KPMG reports “surge of enquiries” on iXBRL, the soon to be compulsory online tax filing language
  • Whilst currently seen as a compliance headache, the real benefits of online filing are yet to be seen, says KPMG

As of this Friday, 1 April, it will be compulsory for all businesses to file their corporation tax returns online in “iXBRL” format.

But despite this having been trailed for the past two years, many businesses are still not ready.

Bivek Sharma, head of the iXBRL team at KPMG in the UK, said: “Concerns over software being ready and misplaced hope that the deadline might be extended have meant that some businesses are not adequately prepared for online filing even though the reality of it is now upon us.”

“We’ve had a surge of enquiries about our iXBRL solutions in the past few weeks as the deadline has approached.  Some companies are simply looking for a conversion service which can turn their accounts produced in a Word or Excel format into a suitable iXBRL form for online filing.  Others want to completely overhaul their accounting process to embed iXBRL more comprehensively.”

According to KPMG, there are benefits to using iXBRL beyond purely complying with HMRC’s requirement to filing online. Bivek Sharma explained:

“The most obvious benefit from Friday of using iXBRL is that if you don’t, you’ll get a fine from HMRC as online filing will be compulsory.  But the benefits go beyond that.  For a start, Companies House has mandated iXBRL filing from 2013.  Second, although right now iXBRL is seen as a compliance headache, its real value should become clear in time as the way in which financial information will be captured and reported will improve significantly. This means that analysts, investors, management etc. will get a more real-time view of a business’s financial performance.  And in our view this is where the most significant benefit lies.”

For further information please contact:

Margot Cowhig, KPMG Corporate Communications

Tel:  0207 694 4246 Mobile: 07920 274856: margot.cowhig@kpmg.co.uk

KPMG Press Office: 0207 694 8773

About KPMG

KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with nearly 11,000 partners and staff.  The UK firm recorded a turnover of £1.6 billion in the year ended September 2010. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 150 countries and have more than 138,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  KPMG International provides no client services.

 

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