Deloitte Says Only 1 in 5 Companies Ready for IXBRL E-filing
With less than 6 months to go till the introduction of the mandatory iXBRL electronic filing of corporation tax submissions, only 1 in 5 companies may have decided on the approach they will be taking.
The figure has been suggested by Deloitte, the audit firm which holds a major share of the UK audit market.
Deloitte has been warning businesses all over the country that the lack of systematic approach regarding the new system of corporation tax submission may result in many of them being unable to meet the deadline.
Deloitte says that since many of the e-filing account preparation packages will not be released before the end of this year, businesses which have been waiting for them will suffer. This is because they will have little time on their hands to complete training and install kit before the new filing requirements come into effect.
The new filing requirement will come into effect on April 1, 2010.
Deloitte further says that most companies are presently at the stage of determining strategy to help them ensure compliance with HMRC (HM Revenue & Custom)’s requirements. It has cautioned companies who will not be ready at the time of filing that their risk rating with the HMRC will get negatively effected.
Andrew Gwyther, who is Head of the UK iXBRL team at Deloitte, said that though there are a variety of tools being released to help businesses file their corporation tax submissions, companies will have the select the right approach to meet HMRC’s requirements.
Gwyther also said that it is important that businesses “leave room to make the most of iXBRL as an integrated part of the financial reporting processes in the long-term”.
Deloitte has estimated that it may take a few days for compliance to be completed. If the work is outsourced, it may take up to several days.