HM Revenue & Customs are pressing ahead with plans to require UK panies from 1 April 2011 to submit their statutory aounts in a new data format known as Inline XBRL (or ‘iXBRL’), even though software needed to achieve this is not yet readily available across the market aording to letter to HMRC Head from the UK Aounting bodies this week.

In a joint letter to David Gauke MP, Exchequer Secretary to HM Treasury,

the Institute of Chartered Aountants of Stland (ICAS) and other bodies

have criticised HMRC’s stance and called for a review of the timetable for

iXBRL-based pany tax filing.

iXBRL renders elements of data in forms readable by both humans and puters, offering HMRC the chance to greatly enhance their ability to analyse and risk assess taxpayer data.

The letter claims that many panies and tax agents may not even be able to take delivery of the necessary software by 1 April 2011 when the new regime begins – let alone have time to install and test the software in their IT environment and train and familiarise their staff with the plexity of the ‘data tagging’ which iXBRL involves.

ICAS is calling for early legislation to change the implementation plan. The Institute remends for a period of at least six months from 1 April in which panies should be allowed to file their aounts in either iXBRL or the alternative PDF format, followed by a further year in which iXBRL tagging requirements would be cut back from the proposed ‘minimum tagging’ to a rced level.

Donald Drysdale, Assistant Director of Tax at ICAS and a Chartered IT Professional, said: “The majority of our members are enthusiastic supporters of online tax filing. However, we have always been ncerned about HMRC’s insistence on using iXBRL, which has never been properly tried and tested on any other project of this scale. HMRC’s plan relied for its suess on key software vendors bringing an adequate choice of new products to market, and this presented developers with big challenges. Some key players have failed to deliver their iXBRL-based aounts preparation solutions in adequate time before 1 April.

"It is now only two months until the new regime is due to kick in. panies and tax agents need time to select the software that suits their long term needs, time to install and test it, and time to train and familiarise their staff and agree on new methods of working. Even among those who have managed to achieve this already, there are ncerns about the time and effort they are finding they have to devote to expensive manual tagging.

"HMRC needs to understand the unaeptable level of doubt, nfusion and st being imposed on the business munity, which is ntrary to the ernment’s stated aim of rcing the level of administrative burdens on business."

Donald added: "We want HMRC to aept these changes and take swift action to explain them to taxpayers and agents, in addition to providing clear guidance to all those who are facing difficulties because of non-delivery or late delivery of software."

The letter has been subscribed jointly by the following bodies: the Institute of Chartered Aountants of Stland (ICAS); the Association of Aounting Technicians (AAT); Association of Chartered Certified Aountants (AA); the Association of Taxation Technicians (ATT); the Chartered Institute of Taxation (CIOT); the Institute of Chartered Aountants of England and Wales (ICAEW) (Tax Faculty)

The letter can be found here: Joint letter to David Gauke MP, Exchequer Secretary to HM Treasury