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From 1 April 2011, all Company tax returns with a year end after 31 March 2010 have to be filed using iXBRL (in-line Extensible Business Reporting Language) This enables HMRC to collect information and data from company accounts much more effectively than has been possible in the past. HMRC have specified which information they will “tag” – the minimum list of potential items exceeds 2,600 possible items of information - the “tagged” items in the accounts will automatically be noted by HMRC when the Company tax return and accounts are submitted. According to HMRC, the benefits of having financial data in this computer-readable format include reduced errors from the rekeying of financial data, faster analysis of the data and reduced costs associated with data processing and filing. We wonder if it will also enable the Revenue to take a more targeted approach when selecting companies for enquiry. At P A Hull & Co, we are happy that the tax software we use to file returns for clients has already been updated, we have invested in staff training and we have made the first returns using the new system. If you are not a client and are worried about whether your Company Tax Return will be accepted, please ring us.
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