With the HMRC’s XBRL transition having ended on the 31 March 2013, taxpayers are none the wiser what it actually means. A combined announcement covering guidance on the end of transition, implications of FRS101 and 102 for tagging and the new full P&L taxonomy was expected just before the start of this financial year which does not leave taxpayers with much time to respond accordingly.
Shortly after announcing the details of their iXBRL mandate, HMRC offered two concessions to minimise the burden of iXBRL compliance.
Firstly, HMRC announced a “Minimum tagging list”. Under this concession, taxpayers have the option to reduce the amount of tagging by limiting it to those tags which are on that list.
Secondly, HM Revenue and Customs released a document titled “managing the transition” aimed at reassuring taxpayers of possible concerns and uncertainties relating to the transition to iXBRL reporting. In this document, HMRC re-iterated that as long as a reasonable efforts were made, there would be no grounds for rejecting a submission which passes their very limited gateway checks, no routine monitoring for tag accuracy and completeness and no additional penalties over and above late submission.
Both of these concessions were due to expire on the 31 March 2013 however HMRC performed a u-turn on the 31 May 2012 by extending indefinitely the minimum tagging list. This has been a source of confusion for many taxpayers who mistakenly interpreted this as an extension of transition, which it was not.
With transition officially ended, many questions remain. What does this mean in practice and what should taxpayers do differently? Is it time to begin using independent tagging assurance services such as those offered by SureFile? Will outsourced tagging services become more costly as taxpayers demand more assurance?
About Report Authority
Report Authority (reportauthority.com) is an XBRL report authoring tool designed for authoring any type of regulatory report for submission to authorities across the globe. Incorporating flexible data adaptors and templating functionality, Report Authority can help transform the statutory accounts production process and eliminate the often negative impact that XBRL reporting can bring.