Charities and not-for-profits: Are you ready for iXBRL?

From 1 April 2011, organisations which are required to submit a corporation tax return to HMRC must now submit iXBRL compliant financial statements and tax computations.

There is currently a temporary exemption for registered charities if combined income (i.e. that of the charity and that of any wholly owned subsidiaries) is less than £6.5million. Only those charities that receive a formal notice to file a tax return or that are issued with a tax return, or believe they may have to pay tax, need to complete a tax return and may, therefore be affected by iXBRL. In addition, organisations that do not file a corporation tax return, such as those that are Trusts and hence file a Trust and Estate Tax Return or those who are unincorporated associations and file income tax self assessment return, will not be impacted by iXBRL.

Buzzacott is equipped to deal with the complexities of tagging

Organisations can no longer provide a ‘PDF’ or paper copy of their financial statements when they submit their tax return to HMRC. They are now required to submit online to HMRC an ‘HTML’ file (a file that is able to open in any web browser), which is tagged under iXBRL.

Our iXBRL team will take the finalised Microsoft Word or Excel version of your signed financial statements, convert them to an ‘HTML’ document and tag the items in the financial statements to meet HMRC's minimum iXBRL tagging requirements.

Given our experience of charity and not-for-profit financial statements, our iXBRL team is well placed to deal with the complexities that tagging of charity and not-for-profit financial statements can present because of their unique nature.

Buzzacott is now recognised by HMRC as an iXBRL Managed Tagging Provider. View HMRC's website.

For further information on iXBRL please see our Insight published last year or our iXBRL update published in March 2011. Alternatively please do not hesitate to get in touch with your usual Buzzacott contact, or email enquiries@buzzacott.co.uk.