HM Revenue & Customs Receives First XBRL Tax Filings
Oxford, 9th October 2006.
HM Revenue & Customs (“HMRC”) this month became the second UK Government agency to have received company tax filings using the new XBRL electronic reporting standard.
The announcement that HMRC has received corporation tax submissions using XBRL, the international standard for describing business and financial data, follows the successful launch of the XBRL-based electronic filing service for annual returns at Companies House earlier this year.
The HMRC service incorporates tax computations which are formatted in XBRL and automatically validated, upon receipt, against HMRC’s computations taxonomy, ensuring the accuracy and comparability of information used by companies to carry out their tax calculations. The validation is carried out by DecisionSoft’s True North, the world’s most widely used XBRL processor. DecisionSoft also developed the XBRL taxonomy and the XML schemas used by the service. “Their breadth of experience in e-filing and XBRL has played a vital role in the success of this project,” said Jeff Smith, Manager of the HMRC project for electronic corporation tax filing.
The receipt of the first XBRL corporation tax filings by HMRC follows the recommendation of Lord Carter of Coles, leading the review of HMRC’s online services, that online tax filings should be extended to cover all UK companies. HMRC has announced their intention of moving to mandatory online filing of corporation tax by 2010.
XBRL is a freely licensed, open XML standard, used for the electronic communication of business and financial data between companies, regulators and investors. The XBRL standard is managed by a not-for-profit international consortium of around 480 companies, organisations and government agencies.
The XBRL standard allows agreed concepts, such as UK GAAP or IFRS accounting standards, to be defined and exchanged between compliant systems. XBRL is being used for the corporate financial data submitted to a growing number of regulatory filing programmes around the world, including the Securities and Exchange Commission and the Federal Deposit Insurance Corporation in the US.
About HM Revenue & Customs
HM Revenue & Customs is responsible, under the overall direction of UK Treasury ministers, for the efficient administration of income tax, tax credits, corporation tax, capital gains tax, petroleum revenue tax, inheritance tax, national insurance contributions, stamp duties, VAT and customs duties. It has taken the lead in the Government’s initiative to provide all UK citizens with “joined-up” internet access to all Government services.
DecisionSoft Limited, founded in 1997, is one of Europe’s leading XML vendors, with a substantial history in the successful design, publication and validation of XML and XBRL for Government departments and Fortune 500 companies.
DecisionSoft’s True North suite provides enterprise-strength XBRL processing, and is used to support the XBRL-enabled filing programmes run by Companies House and HM Revenue & Customs. The flagship True North validator is used widely throughout the financial reporting industry and by regulators on both sides of the Atlantic. Boasting world-leading XBRL developers, DecisionSoft products are regarded by many as the “gold standard” in this field.
DecisionSoft is a privately held company based in Oxford, England.