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MTD, Corporation Tax, iXBRL, Companies House, HMRC

Does anyone know what plans they have

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Obviously Companies House only report iXBRL accounts if they have been submitted electronically and if paper accounts have been submitted then they don't report in iXBRL form, but only in PDF.   HMRC, however, require iXBRL for corporation tax.  iXBRL is a special case of XML and more generally HMRC have been moving away from using XML towards using Json as part of MTD (although the Customs system use MTD protocols and XML rather thatn JSON (JSON - Javascript Standard Object Notation).

In the USA the SEC provides data in iXBRL which is quite useful for doing technical analysis of accounts.

Does anyone know what is happening in the UK from this perspective?   Are Companies House moving towards requiring iXBRL submissions at least for FRS102 and FRS105.   

Are HMRC going to continue with iXBRL for Corporation Tax or are they going to change this to JSON (I have asked them as well and will report on their response).

What about the Stock Exchange and news feeds?

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By ireallyshouldknowthisbut
31st May 2019 15:18

iXBRL was the new amazing gateway to all good things about 10 years ago.

however no-one gives flying monkeys about it now, you can stuff in any old cack to HMRC and so long as some basic bits are tagged it goes through.

I am not sure HMRC know what to do with the data. "Nothing at all" is my guess, given on the rare occasions you get a CT600 enquiry............they ask for a PDF of the accounts.

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By Wanderer
31st May 2019 15:58

No, no there's loads of benefits, must be, this is what HMRC say:-

HMRC wrote:
2.3 What are the benefits of iXBRL?
The introduction of XBRL tags enables automated processing of business information by computer software, cutting out laborious and costly processes of manual re-entry and comparison. Computers can treat XBRL data ‘intelligently’: They can recognise the information in a XBRL document, select it, analyse it, store it, exchange it with other computers and present it automatically in a variety of ways for users. XBRL greatly increases the speed of handling of financial data, reduces the chance of error and permits automatic checking of information.

Inline XBRL (iXBRL) offers additional benefits as it presents XBRL data in a human readable form, either on screen or in printed output. It also enables the author’s branding and layout to be maintained so that the recipient can view the same document the author created, whilst the computer can ‘intelligently’ recognise the embedded XBRL tags.

HMRC will benefit from much more effective analysis software, cutting out unnecessary queries and helping to deliver better automated risk assessment so they can focus resources on businesses where the compliance risks are greatest. In addition HMRC and Companies House will achieve major improvements in the speed and efficiency with which they handle business data. Both will cut out manual processes and handling of paper.

As iXBRL becomes established, many companies may find that they can benefit from using XBRL to improve internal processes. XBRL has many potential benefits for businesses. By upgrading systems to utilise XBRL they can streamline and automate their methods for collecting, assembling, monitoring and reporting business data across their whole operation. They should be able to integrate disparate data systems. They can also turn internal management reporting and external reporting into processes which are fast, efficient and cost-effective.

Companies may want to discuss the exploitation of these benefits with their accountants and software and system providers. Consumers of financial data, including banks and other financial institutions, investors and analysts, can receive, find, compare and analyse data much more rapidly and efficiently if it is in XBRL or iXBRL format.

Same as MTD, loads of benefits for everybody for that as well.
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By ireallyshouldknowthisbut
31st May 2019 16:49

It be funny if it wasn't deeply depressing and borderline criminal, how much time and money has been wasted on iXBRL, and is now being wasted on MTD (and ten fold) for no increase in the tax take.

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By johnhemming
31st May 2019 17:05

The odd thing is that from an investors perspective the iXRBL data would be quite useful, but it tends to only be the smaller companies where you can get iXRBL information from companies house.

I do quite like the idea that the FRC publish an analysable document that specifies all of the "facts" that could be in accounts for FRS102 or other accounting standards.

This is also quite a helpful website for looking at these things:
https://uk-taxonomies-tdp.corefiling.com/yeti/resources/yeti-gwt/Yeti.jsp

However, from what people say it may be that corporation tax moves towards json from iXRBL.

XML is a lot more picky than json, but having the FRC doing its taxonomies would imply that iXRBL is here to stay.

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By ireallyshouldknowthisbut
31st May 2019 18:08

@jhn, whilst it might be "quite useful" for investors, there are no investors in micro businesses of note.

So one minor use doesn't mean million of hours of effort across micro businesses should be involved for producers of the accounts.

The main failure with MTD is the "what can be done" bears little relationship with the "enormous amount of effort for no benefit"

The benefits are massively overblown, and the costs woefully under stated, hence poor decision making on such policies.

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By johnhemming
31st May 2019 18:45

I don't think we disagree on this point.

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By Wanderer
31st May 2019 18:15

johnhemming wrote:

The odd thing is that from an investors perspective the iXRBL data would be quite useful, but it tends to only be the smaller companies where you can get iXRBL information from companies house.

Exactly.
All that cods from HMRC that I posted above really relates to PLCs. And 99%+ of companies aren't PLCs. And the majority of PLCs DON'T file iXBRL accounts at Companies House, so the overall benefit is close to nil. Still doesn't matter as it doesn't cost HMRC a thing to impose this on hundreds of hundreds of thousands of small businesses.
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By Wanderer
31st May 2019 18:16

Duplicate post.

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