What’s changing?

From April 2011, under Government proposals, all companies, clubs, societies, associations and other unincorporated bodies will have to:

●  file their company tax returns online for all returns delivered after 31 March 2011 for accounting periods ending after 31 March 2010, using a specified XBRL* data standard for accounts and computations; and

●  pay their Corporation Tax (CT) electronically.

Please note from April 2011 HMRC will not accept a company tax return filed on paper when it should have been filed online.

HMRC will not accept any returns filed online with accounts and computations sent as Portable Document Format (PDF) attachments.

What is XBRL?

XBRL (eXtensible Business Reporting Language) is an international IT data standard designed to make it easier to report financial information between businesses and on the Internet. Using it allows you to file data directly from accounts and tax preparation software and tax filing systems.

*The specified XBRL data standard you must use is Inline XBRL (iXBRL) which allows the data you file to retain your layout and branding.Apart from using the iXBRL data standard and filing online there are no changes to the normal process of preparing and filing Company Tax returns.

Commercial Software

If you are already using, or intend to use, a commercial software package to file your client’s company tax return online, please check with your software supplier that the product you are using will be upgraded to allow you to meet the new requirements by April 2011.

HMRC CT Online service

In Autumn 2009, HMRC will be improving its CT Online service to accept accounts and computations filed online in XBRL format, using either HMRC’s own software or commercially available software packages.From the launch of the new CT Online service later this year, until the end of March 2011, you can choose to file your client’s company tax return online, attaching accounts and computations either as PDFs or in a specified XBRL data standard. You can also still file on paper during this period.

HMRC CT Filing software

To coincide with the new CT Online service, HMRC will be also be introducing its own CT filing software in Autumn 2009, which will have XBRL built in. The software allows the online filing of the company tax return and supplementary pages A, E & J only.Please note if you are currently using HMRC’s existing CT Online filing software product, it’s important you save all your information before the new CT Online product is launched in Autumn 2009 to ensure you don’t lose data.

Timeline for online submissions

Electronic payment

Visit our website at www.hmrc.gov.uk/payinghmrc/corporationtax.htm to find further information about the different types of electronic payments we accept. 

Why wait?

You don’t have to wait until 2011 to start using HMRC’s CT Online service.

If you haven’t yet signed up it’s a simple process to register and enrol. Go to our website and select ‘Corporation Tax’ from the do it online menu on the left-hand side. Click on ‘register’ in the new user section, select ‘Agent’ and follow the on-screen prompts.

It will only take a few minutes to give us your details, create a password of your choice and be given a User ID. We will send you an Activation Code (PIN) in the post within 7 days, and then you’re ready to go.

Features of the CT Online service

There’s more to the CT Online service than filing a return. You can:

●  view your clients account details, liabilities and payments, and current balances

●  view & download a list of your authorised clients

●  view and amend some company details, for example communication address, phone numbers, and email address.