A step to the long awaited union of HMRC & Co House?

DickM · Sep 22, 2009

I've only just noticed this announcement on the Co House website, ref below link:

http://www.companieshouse.gov.uk/about/miscellaneous/hmrcCommonFiling.shtml

It is mooting the long overdue commonisation of filing formats for UK Ltd Companies' annual accounts currently submitted via a standard PDFsoftware matrix to Co House, Cardiff - with the Ltd Co accounts that are required to be attached to the HMRC CT600 manual or online submissions to the UK's many Tax Area offices. Currently, there is no established structured format for UK Ltd Co accounts that are attached manually or electronically to the CT600 form, other than it must be submitted in Portable Document Format. Even more astonishing is that approved accounts files in Co House's standardised PDF layout are currently deemed unacceptable for CT600 submission by HMRC, and consequently rejected.
However, apparently HMRC will now work towards embracing "eXtensible Business Reporting Language (XBRL) format" currently utilised by Co House.

Also contained within the review were recommendations that all companies should be required to file their Company Tax Returns online, using XBRL, and make payments electronically for returns due after 31 March 2011.

My take on this is that common sense has ruled @ last (albeit somewhat late!), and that this standardisation should yield efficiencies in current tax officers headcount numbers, plus in-house and external IT support costs, e.g. the current armies of help deskers. Not to mention eradicating the current frustration suffered by the many thousands of SME directors in the UK, dealing with two powerful Government bodies and their current incompatible accounts format requirements. Efficiencies all round on the horizon!

David Griffiths · Sep 22, 2009

In reality, it's Co House that has changed its stance and they have (at last) agreed to accept the iXBRL format that has long been favoured by HMRC. Somebody behind the scenes seems to have knocked some heads together

In practical terms I think that we are some way from a single filing, largely because the documents filed are different. Most small companies file abbreviated accounts at Co Ho, but HMRC require full accounts with detailed profit and loss accounts in addition

GaryMc · Sep 22, 2009

Co House has lagged behind on iXBRL because of the work that was needed for the Co Act 2006 and the new methods of form submission.

The idea with the joint filing facility will be that you will file the HMRC required accounts but that the submission will be split and the indicated Co House accounts will head to Co House and the full accounts will then head to HMRC.

HMRC have produced a minimum set of tags for the accounts that they want to see and it will be interesting to see whether Co House accept this or whether they want every single item to be tagged.

How is everyone planning to cope with the mandatory filing?

David Griffiths · Sep 22, 2009

GaryMc said:
How is everyone planning to cope with the mandatory filing?

Our accounts software suppliers will produce the necessary reports for us. They've been holding back on implementing this until the Revenue and Co House actually agreed on the format.

It should be a seamless part of accounts production

DickM · Sep 22, 2009

David Griffiths said:
In reality, it's Co House that has changed its stance and they have (at last) agreed to accept the iXBRL format that has long been favoured by HMRC. Somebody behind the scenes seems to have knocked some heads together

In practical terms I think that we are some way from a single filing, largely because the documents filed are different. Most small companies file abbreviated accounts at Co Ho, but HMRC require full accounts with detailed profit and loss accounts in addition

David, I'm totally on-side with your "knocked some heads together" take. However, I've also witnessed over the years, as I'm sure you have, that commonisation of working practices and functions in the UK Private Sector has run @ pace .... compared to snail-like progress in the Public zone :redface:
Although, my very good friend of many years, who works @ the sharp end of Capita (I.T.) ...... he shall remain truly anonymous, has he was one of the integral contributors to "the UK traffic congestion charge system"! ......... wanted to take an "early" exit a couple of years ago, but is continually showered with plaudits -no extra money

to continue with further systems development in the Public Sector functions (I was tempted to put a "dis" in front of the latter word)

This suggests that someone high up in UK.Gov has smelt the coffee, and just maybe we will witness a faster transformation of the remaining archaic business processes/systems than their track record to-date suggests. However in contrast, we all know that there must be a massive, on-going counter argument/balancing act behind-closed-doors (nos 10 & 11 Downing Street?) to protect jobs - more so in these recessionary times.
It will be interesting to witness how it all pans out. BTW, I've never worked in the public sector ...... but that's probably stating the bleedin' obvious

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