CoreFiling and BDO LLP help HMRC filers avoid Corporation Tax pitfalls
Thorough validation of iXBRL filings before submission reduces rejection risks
Oxford, 1st July, 2011. Two months after iXBRL filing became mandatory, it has been reported in the press that many corporation tax filings are still failing to meet HMRC submission requirements. It was announced today that CoreFiling's Magnify®, the review tool which ensures consistency with submission requirements, has been adopted by BDO LLP, the leading firm of accountants.
HMRC have agreed not to penalise companies for incorrect tagging during the 'transitional period', provided they can demonstrate best endeavours in complying with the iXBRL mandate. Despite this leniency, HMRC guidelines published in March 2011 indicate that filing deficiencies such as incorrect or missing tags may put companies at greater risk of follow up by tax inspectors.
CoreFiling's Magnify allows filers to identify discrepancies in the tagging of their financial statements before they are filed. BDO adopted Magnify across their iXBRL services from day one to ensure all tagged financial statements are compliant with HMRC's electronic Gateway prior to submission. BDO has licensed Magnify to provide in-depth checks of financial statements converted to iXBRL by CoreFiling's Seahorse® tagging system.
Tony Spillett, tax partner and head of iXBRL services at BDO, commented: "Using Seahorse, we have had no failed CT submissions. However, Magnify further supports a checklist-based review of tagged financial statements to guarantee HMRC Gateway compliance and is intrinsic to our dedicated quality assurance team's review processes"