Share this content

Tagging the Detailed P&L for HMRC

Do HMRC want each individual line item to be tagged when submitting the detailed P&L with the comp?

Didn't find your answer?

I have always used VT Accounts for creating Limited Company accounts and it tags every item in the detailed P&L account.

I am thinking of switching to Taxcalc and have been testing it out, but I noticed that only the totals in the detailed P&L are tagged, not the individual lines.

Taxcalc supports says this is all HMRC require but I was under the impression that HMRC require full tagging?

Anyone know what the rule regarding tagging of detailed P&L for HMRC actually is?

Thanks.

Replies (10)

Please login or register to join the discussion.

avatar
By Wanderer
10th Jul 2019 16:33

HMRC wrote:

By ‘correctly tagged’ HMRC means:

that all items in the accounts, computation or detailed profit and loss account, which have a corresponding tag in the taxonomy are tagged


https://www.gov.uk/government/publications/xbrl-guide-for-uk-businesses/...
Thanks (1)
avatar
By Wanderer
10th Jul 2019 16:37

Detailed Profit and Loss XBRL Taxonomies – User Guide
https://assets.publishing.service.gov.uk/government/uploads/system/uploa...

Thanks (1)
ALISK
By atleastisoundknowledgable...
10th Jul 2019 21:23

What do you mean by “it tags every item in the detailed P&L account.”? Literally every entry in the nominal ledger?

Thanks (0)
Replying to atleastisoundknowledgable...:
By Duggimon
11th Jul 2019 08:37

I think he means every expense item, as opposed to just sales, cost of sales, GP, total costs and NP.

Thanks (1)
Replying to Duggimon:
ALISK
By atleastisoundknowledgable...
11th Jul 2019 08:53

Why, is that what TaxCalc and others do? I assumed each P&L item got its own tag.

Thanks (0)
Replying to atleastisoundknowledgable...:
avatar
By Wanderer
11th Jul 2019 09:21

IRIS tags each expense line. OP suggests only totals in TaxCalc.

Thanks (1)
Replying to atleastisoundknowledgable...:
avatar
By ChrisKM
11th Jul 2019 09:33

atleastisoundknowledgable... wrote:

What do you mean by “it tags every item in the detailed P&L account.”? Literally every entry in the nominal ledger?

Clearly not what I meant.

I had looked at the HMRC tagging docs and to me they require detailed breakdowns. Sub totals can be tagged where there is no further breakdown.

There does appear to be an element of choice in that HMRC say "Preparers are free to determine the content of the Detailed P&Ls which they submit".

Looks to me that Taxcalc have made the "choice" to limit the tagging to a minimum. Not sure this is what HMRC would be happy with.

[As an example, both VT and Taxcalc include Directors Renumeration and Travel/Subs under Staff Costs in the detailed P&L. VT then tags each line differently, but Taxcalc just tags the total for Staff Costs].

For a really simple client VT created 20 tags for the detailed P&L; Taxcalc has created 5. Only worry for me is whether HMRC would be unhappy with the Taxcalc level of tagging and it would prompt enquiries?

Thanks (0)
Replying to ChrisKM:
ALISK
By atleastisoundknowledgable...
11th Jul 2019 18:43

ChrisKM wrote:

Only worry for me is whether HMRC would be unhappy with the Taxcalc level of tagging and it would prompt enquiries?

Rest assured, I’ve used TaxCalc for 5 years and didn’t even know that this was a thing. No HMRC investigations in that time.

Thanks (1)
avatar
By Roland195
11th Jul 2019 15:25

The last time I looked at this, I concluded the Sage software by default tagged at a level of detail that exceeded the minimum requirement of HMRC. I was unable to determine if this disadvantaged the client - could go either way, never a good idea to supply more than the minimum generally but alternatively, what are you trying to hide? Practically speaking, we have been filing like this for <7 years now and I have had no feedback from HMRC on the subject whatsoever so I'm inclined to think they do sod all with the data anyway, as with RTI and doubtless MTD.

Thanks (0)
avatar
By ChrisKM
11th Jul 2019 18:29

Looking into this a bit further it looks like it is the FRS 105 micro format accounts that don't have line-by-line tagging of the detailed P&L.

The FRS 102 format accounts do have proper tagging of the detailed P&L.

Don't know if that is a bug with Taxcalc and FRS 105.

Thanks (0)
Share this content