IXBRL for Charities
Do you submit a Corporation Tax return for your charity?
From April 2011 new rules are in place for the submission of information to HMRC.
Below is an extract from the HMRC website.
- "If your charity has to prepare accounts under the Companies Act 2006 or Friendly and Industrial and Provident Societies Act 1968, the new rules require you to file your accounts and computations in iXBRL format.
- Inline eXtensible Business Reporting Language (iXBRL). iXBRL is an IT standard designed specifically for business financial reporting.
There are exemptions from this for smaller charities.
- However, HMRC recognises that the accounting principles by which smaller charities prepare accounts mean that the accounts template included in the free software provided by HMRC may not be suitable for them. Until HMRC provides free software that is suitable for smaller charities, HMRC will continue to accept accounts from smaller charities in PDF format. Computations must be filed in iXBRL format but the free HMRC software should be suitable for these.
- A ‘smaller charity’ for the purposes of this arrangement is one where, together with any wholly owned subsidiaries (companies owned by the charity), the combined income does not exceed £6.5 million for the accounting period.
- Charities with a combined income above £6.5 million will, in almost all circumstances, need to use commercially available software to file their Company Tax Return, their accounts and any computations in iXBRL format.
- Unincorporated associations and incorporated charities not required to prepare accounts under the Companies Act or Friendly and Industrial and Provident Societies Act 1968 (for example charities incorporated under the Charities Act) must submit computations in iXBRL format, but can continue to submit accounts as a PDF oriXBRL file.
- All computations forming part of a Company Tax Return must be in iXBRL. However no computation is required where the Company Tax Return supplementary page CT600E is completed and confirms that all income and gains of the charity are exempt from tax and have been or will be applied for charitable purposes. These charities should attach a letter (as a PDF file) to their online return stating that no computation is required.
- Charitable trusts are not affected by this announcement. Charitable trusts are liable to Income Tax and make tax returns, if required, under Income Tax Self-Assessment."
If your charity is required to file a Corporation tax return and is not exempt from filing accounts in iXBRL format see how Hypercube Consultancy can assist?