Tax experts have ndemned the insistence from the taxman that rporate tax returns only be made in the future using the ntroversial mputer language XBRL.

For acunting periods ending after 31 March 2010, rporate tax returns have to be submitted using XBRL, a language that tags financial data and allows mparability. The majority of rporate tax acunts are currently filed using Microsoft Word or Excel.

AdvertisementBut tax advisers have described the decision to adopt XBRL as both ‘strange’ and placing an ‘unwanted overhead’ on small business.

Tony Spillett, tax partner at BDO Stoy Hayward, estimated the st of implementing XBRL uld be ‘tens of thousands of pounds’ per firm.

‘There’s potentially a lot of work to be done. There’s a lot of red tape and additional burden on business so that HMRC can make life easier for themselves. It’s a real unwanted overhead,’ he said.

He added the long-term shift away from paper filing was welme, however ‘it’s the devil in the detail and the way the HMRC has used the opportunity to capture the data in XBRL form [that] is ncerning’.

Acrding to Kevin Salter, technology partner at Glover Stanbury & , the decision by HMRC to adopt XBRL as the required format is strange given so few firms currently use the system.

‘We have no choice. I don’t know what their rationale for going down that route is. Various representations have been made by acuntancy bodies but they’ve chosen to go their own way,’ he said.

Salter said a ntracted software house will implement the necessary change on behalf of the firm but expects support fees for the service to rise as a result of the new requirement.

Tax advisers believe the change to XBRL will mean HMRC has the capacity to mine data more effectively and uld lead to an increase in the number of tax enquiries.

A spokeswoman for HMRC nfirmed that if a return is not filed in the new format, it will be ‘disregarded’ and treated as not having been delivered.

She said HMRC has nsulted with the profession over the change and is ntinuing to engage with the software industry.