From 1 April 2011 onwards, all companies and organisations will have to file their Company Tax Return online for any accounting period ending after 31 March 2010.
From the same date, companies and organisations will have to pay any Corporation Tax and related payments due electronically (for example by Direct Debit).
Find answers to commonly asked questions about this new HM Revenue and Customs (HMRC) requirement.
On this page:
Question |
Answer and where to find further guidance |
|---|---|
I run a small company with less complex financial affairs, will HMRC's online filing software be suitable for me? |
Most small companies and organisations with less complex financial affairs can use HMRC's Corporation Tax online filing software. Read more about who can use HMRC's Corporation Tax online filing software |
Who can use HMRC's free Corporation Tax online filing software? |
HMRC's free software has been provided as a filing option for smaller companies and organisations with less complex affairs. |
I'm planning to use commercial software to submit my clients' Company Tax Returns online. I'd like to make sure it's compatible with the HMRC Online Service. Is there a way of testing this before filing online 'for real'? |
For commercial software users there is a 'test in live' facility within the Corporation Tax online service. But you can only use this service if your software developer has built the necessary functionality into your product. There is no 'test in live' facility for users of HMRC's free online filing software as the accounts and computations templates within the product ensure your return meets HMRC's formatting requirements. |
Is the 10 per cent Wear and Tear Allowance for furnished lettings included in the tax computation part of the HMRC free software? |
You can't use HMRC's software if you need to report any property income or losses, including the 10 per cent Wear and Tear Allowance. You must use commercial software instead. Find out who can use HMRC software and commercially available alternatives |
Question |
Answer and where to find further guidance |
|---|---|
If I need to amend the return, do I have to do this online |
No, amendments to your return can be sent online or on paper. |
Where can I find a list of error messages that I might receive if my online return is rejected? |
HMRC error messages are interpreted and presented in different ways depending on the software you use. If the message is not clear please contact your software provider or, if you are using HMRC software, contact the Online Services Helpdesk. |
Should a detailed profit and loss account be included with the accounts or computations iXBRL file? |
The statutory accounts a company must produce for its members do not include what is often referred to as a 'detailed profit and loss account'. However, some companies choose to include this as part of the accounts they submit with their Company Tax Return. Others choose to include a detailed profit and loss account as part of their computations. Data within the detailed profit and loss account must be XBRL tagged if a corresponding tag is included within the minimum tagging list for the appropriate taxonomy. Read more about tagging a detailed profit and loss account (PDF 131K) |
My company's accounts cover more than one accounting period. Do I need to include them with the return for each accounting period? |
No. You need to file a separate CT600 return form for each accounting period, but you only need to include your accounts with one of the returns. Similarly, you can include a single computation with one of the returns, or if you prepare separate computations for each accounting period, the computation appropriate to each return. |
If a Company Tax Return is rejected because the format is wrong could a penalty arise or a claim be rejected if the return is re-submitted after the filing deadline? |
Provided you've made a reasonable effort to comply, it's extremely unlikely that HMRC will reject a return that has been submitted online and has passed their validation checks. However, the usual rules for penalties and late claims still apply. Late filing penalties are automatic and a late claim may be refused. If this happens, you can appeal under the 'reasonable excuse' provisions. HMRC will be sympathetic to claims during the two-year transitional period where you may face genuine obstacles to filing online on time. |
I am based in an area which does not have broadband. Can I file a paper return? |
No. HMRC's Online Services are designed to work using either broadband or dial up internet connection. If your dial-up connection does not provide the speed needed to file online, then you will need to explore alternative online options. For example, you can instruct an accountant or tax agent, or enter into an arrangement with another party in a broadband enabled area to use their broadband facility. |
| Do all Charities have to file accounts using iXBRL? | No. Unincorporated charities can submit their accounts as a PDF file. In addition, under transitional arrangements, smaller charities incorporated under the Companies Acts can submit their accounts as a PDF file. |
Question |
Answer and where to find further guidance |
|---|---|
What is iXBRL? |
iXBRL is a way of embedding and displaying accounting/financial information in an HTML document, the universal language for web browsers. It allows data to be 'read' intelligently by a computer and also presented in a human-readable form, either on screen or in printed output. |
What data within the accounts is required to be XBRL tagged? |
You must attach a XBRL tag to the following data where there is an XBRL tag within the minimum tagging list corresponding to the data item:
|
Do I need to file the accounts in iXBRL format? |
Generally, if you are required to prepare accounts under the Companies Acts you must submit the accounts as an iXBRL file. If you are submitting a return for an unincorporated club or association you can submit the accounts as either a PDF or iXBRL file. Read more about the format for submitting accounts to HMRC (PDF 28K) |
If the iXBRL accounts file does not include a Directors' Report, will HMRC reject my return? |
No. The software used to prepare the iXBRL file will ensure the necessary validation tags associated with the Directors' Report are included within the iXBRL file. If the software you use does not do this automatically, contact your software supplier for advice. |
| What do I do if the balance sheet is not approved by a 'director'? | It is a requirement of the Companies Act that a company's balance
sheet is approved by a director, on behalf of the Board of Directors,
and that any copy of the accounts must show the name of the director
who approved them.
To meet HMRC's XBRL tagging requirements, it is mandatory that the name of the director approving the balance sheet is XBRL tagged. This applies to all accounts sent in iXBRL format, not just those for companies that are incorporated under the Companies Act. The inclusion of this XBRL tag forms part of the validation process for the online submission of Company Tax Returns. However, there are circumstances where the 'director' may not approve a balance sheet; for example when a balance sheet is sent for a UK branch of a company resident overseas, or a Industrial and Provident Society with 'committee members' rather than directors. In these situations, the mandatory XBRL tags must still be included within the iXBRL accounts file but, in place of the name of a director, the XBRL tag should refer to the person approving the balance sheet or - where there is no balance sheet - the CT600. |
Do I need to send iXBRL accounts for a dormant company? |
The regulations for online filing of the Company Tax Returns do not change the legal requirement for when a return must be delivered. The regulations state that if a return is made then it must be submitted online with the accounts in iXBRL format and tagged at least to the standard of the minimum tagging list. A dormant company will not have to deliver a return unless it is sent a statutory notice to do so. In most cases, if HMRC has been notified that a company is dormant, no notice to deliver a return will be issued. |
Can I tag accounts produced using Microsoft Excel or Word? |
Yes. Commercially available conversion software enables an Excel/Word file to be converted to iXBRL and the required XBRL tags to be inserted. The converted accounts can then be attached to online form CT600 and submitted online either using one of the many commercial software packages or using HMRC's free software. If you use HMRC's software then you would attach the converted Excel/Word accounts instead of filling in the accounts template that's contained in the software. |
What difference does filing online using iXBRL make to my claim for Research & Development (R&D) Relief? |
A claim to R&D Relief must be made in a Company Tax Return, which from 1 April 2011 must be submitted online. The calculation of the relief forms part of the computations, which must be in iXBRL format and tagged at least to the level of the minimum tagging list. |
Question |
Answer and where to find further guidance |
|---|---|
| What guidance is available to help me make the transition to filing online using iXBRL? | HMRC has published comprehensive guidance on their website. HMRC's free software - including its accounts and computations templates - is suitable for smaller companies with less complex financial affairs. If you choose to use this, you can be assured that the data will be sent in the correct format. However, most companies will choose to use commercial software, which typically offers greater flexibility and functionality. Software suppliers can provide advice on the use of their products. |
What should I do if my software can't generate an iXBRL file? |
HMRC's approach is to provide guidance and support for their customers to help them get it right, not to reject returns or penalise them for getting things wrong. HMRC don't expect their customers to change from their existing software supplier in order to submit their return online and on time even if the software developer is late in delivering software able that is iXBRL enabled. Read about HMRC's approach to managing the transition to online filing (PDF 30KB) |
What do I need to tag to comply with HMRC’s iXBRL requirement? |
To comply with the legislation the accounts and computations must be tagged at least in accordance with the Minimum Tagging Lists. However, the legislation also provides HMRC with the authority to accept returns where XBRL tagging falls short of this standard of accuracy and completeness. During a two year transition period, HMRC will not reject returns where XBRL tagging is inaccurate or incomplete. Although HMRC will not open a compliance check solely or mainly to check tagging, where XBRL tagging falls below the legislative requirement it is more likely that the return will be subject to a check. HMRC expects most customers to be able to meet the required standards from the outset, but for those who can't HMRC expects to see progressive improvement towards full compliance during the transition period. Read more about managing the transition to online filing (PDF 30K) |
What options do I have if my software provider delivers the software I need to submit an online Company Tax Return late and I cannot produce any iXBRL accounts by the deadline? |
HMRC have set up a dedicated team to provide advice and assistance tailored to your individual circumstances. Follow this link to find out more. Read more about managing the transition to online filing (PDF 30K) |
| During the transitional period what manual tagging do I need to undertake? | You should aim for XBRL tagging to be completed to the level of the 'minimum tagging lists'. However, HMRC accepts it might take some customers a little time to achieve full compliance. HMRC's guidance on managing the transition to online filing explains that during the transitional period, HMRC will accept returns with either of the following:
The small number of essential tags - used for validation - must always be included. HMRC expects to see progressive improvement towards full compliance. Read more about managing the transition to online filing (PDF 30K) |
I received my iXBRL software late and now find that my software is not compatible with my computer hardware. Can I delay filing using iXBRL? |
HMRC expect you to upgrade your hardware within a reasonable period. If you submit your return without iXBRL accounts/ computations then you need to submit a 'reasonable excuse' claim for consideration. These claims will be considered sympathetically. Read more about managing the transition to online filing (PDF 30K) |
Question |
Answer and where to find further guidance |
|---|---|
What methods can I use to pay Corporation Tax electronically? |
Electronic payment doesn't just mean online payment and can also include Bacs, Direct Debit, CHAPS, debit and credit card payment along with any other approved electronic means. |
Where can I find the payment reference that must accompany any Corporation Tax payment? |
You'll find the payment reference number on the payslip that HMRC issues one month before the date you must pay your Corporation Tax - your due date. Please note: from 1 April 2011 you must pay Corporation Tax and related payments electronically. |
