All companies and organisations will have to file their corporation tax return online for any accounting period ending after 31 March 2010. From 1 April 2011 onwards companies and organisations will have to pay any corporation tax and related payments due electronically. Basically, the rules on calculating the corporation tax liability or filling in the return have not changed. What has changed is the format used and how it is filed with HMRC. The changes are:
· Accounts and tax computations need to be filed in Inline eXtensible Business Reporting Language (iXBRL). iXBRL is an IT standard designed specifically for business financial reporting and is expected to be user-friendly
· Additional enclosures or attachments to your tax return could be attached to the online return as a PDF the maximum size of the combined files not to exceed 3MB
· This requirement is applicable to overseas companies with tax residence or a permanent establishment in the UK
· Companies that are part of a group must submit their individual company accounts in iXBRL format although the parent company may choose to deliver consolidated accounts in iXBRL format. A parent company that doesn’t prepare consolidated accounts must provide its individual accounts in iXBRL format and any group accounts as a PDF.
Corporation Tax Payments
From 1 April 2011 all corporation tax and related payments like interest on overdue tax and penalties should be paid electronically. Electronic payment includes online payments, BACS transfers, payment by direct debit, CHAPS transfers and debit and credit card payments.
Exemption
Online filing could be exempt in two situations 1) where the directors and company secretary are all practising members of a religious society or order whose beliefs are incompatible with the use of electronic methods of communication, and 2) if the company or organisation is subject to a ‘winding-up order’, is in administration.
