Brought to you by
AIA
Save content
Have you found this content useful? Use the button above to save it to your profile.

Differences between iXBRL submitted to Companies House and HMRC

8th Nov 2012
Brought to you by
AIA
Save content
Have you found this content useful? Use the button above to save it to your profile.

Companies registered in the UK are required to file their accounts with Companies House, while all businesses (not just companies) are required to do the same with HMRC, along with their tax returns. Companies are therefore required to submit the same information to two different authorities. HMRC maintains a joint filing accounts template that is meant for small audit exempt companies. When these companies fill up the accounts, data gets filed with both the government departments electronically.

In 2006, Lord Carter’s report recommended that HMRC and Companies House work together to provide a joint filing system. In 2011, HMRC mandated iXBRL filing for all business entities. Since then, both departments have been working closely to arrive at a single platform to accept iXBRL documents.

Below are some of the key differences in XBRL filing with HMRC and Companies House:

i. Requirement:
While it is mandatory for most of the business entities in the UK to file their accounts and tax computations in iXBRL format with HMRC, Companies House has not yet made it mandatory. It accepts voluntary filings.

ii. Format:
While HMRC accepts only iXBRL format, Companies House currently accepts iXBRL and XBRL formats. This is likely to get changed and aligned with what HMRC accepts.

iii. Number of files:
While HMRC may require two files (Accounts + Computations) in iXBRL format, Companies House requires only one – Accounts alone.

iv. Taxonomies:
HMRC’s filings involve three taxonomies (a) UK-GAAP, (b) UK-IFRS and (c) UK-CT. Companies House filings involve three taxonomies (a) UK-GAAP-AE, (b) UK-GAAP and (c) UK-IFRS. UK-GAAP-AE (Audit Exempt) is just a sub-set of the main UK-GAAP. In rare cases, HMRC does accept accounts prepared using foreign taxonomies like US-GAAP.

v. XML file:
Even though iXBRL joint filing has the same set of tagged information going to both the departments, they have different headers in their XML file.

vi. Validation:
HMRC validates and accepts all its filings through its gateway system. Companies House has its own validation gateway for voluntary filers.

DataTracks UK is a leading provider of XBRL services to Accounting Firms and Businesses. DataTracks (www.datatracks.co.uk) provides iXBRL Managed Tagging Services to help companies convert their financial statements and tax computations to iXBRL format for filing with HMRC. All DataTracks’ services are provided through an easy to use e-commerce portal. Users can register, create entities, place orders, pay, upload files and download iXBRL output when ready. DataTracks developed its XBRL conversion software in-house, and was designed to support roll forward. As a result, clients are assured of consistency in tagging to their iXBRL documents and conforming to the latest taxonomy.

To find out more about DataTracks, visit www.datatracks.co.uk or send an email to [email protected]

The views expressed are that of the author’s and DataTracks is not responsible for the contents or views expressed therein. If any part of this blog is incorrect, inappropriate or violates the IP rights of any person, please alert us at [email protected]. We will take immediate action to correct any violation.

Tags: