Firms get reminder on corporation tax changes
HM Revenue and Customs (HMRC) has issued a reminder about important changes that will be affecting corporation tax this April.
Under the changes, all company tax returns sent in from April 2011 must be filed online for accounting periods ending after 31 March 2010.
What’s more, returns will need to be submitted in a data format known as Inline XBRL or iXBRL.
Corporation tax payments must likewise be made electronically from April 2011.
The changes are not confined to limited companies. The new rules will apply to other organisations that pay corporation tax, including clubs, societies, associations, co-operatives, charities and other unincorporated bodies.
Companies can file online using either commercial software or HMRC’s own filing software. The latter is specifically aimed at companies with less complex tax affairs.
There is already a wide range of commercial software available, with more coming onto the market in the near future.
More information on the commercial software options can be found at www.hmrc.gov.uk/efiling/ctsoft_dev.htm.
Firms that still need to sign up for electronic corporation tax filing can visit www.hmrc.gov.uk/ct and then click ‘register for corporation tax online’.
Alternatively, HMRC and Companies House have launched a new joint filing service for company accounts.
The service allows companies with relatively straightforward financial affairs to send their accounts in iXBRL format to HMRC and Companies House as part of their company tax return.
To use the service, firms must register with HMRC online services and enrol for corporation tax online. A template can then be used to submit accounts to both HMRC and Companies House.
More information can be found at www.hmrc.gov.uk/ct/ct-online/file-return/joint-filing.htm.
If you have any concerns over the new filing system, we will be more than pleased to offer expert advice.