Call to delay compulsory use of new accounts software
Thursday, 10 February 2011 11:08
Some of the UK’s main accountancy bodies have expressed ‘deep concerns’ over plans to force companies to submit their accounts using the new inline Extensible Business Reporting Language (iXBRL) format from 1 April.
In a letter to the exchequer secretary to the Treasury, David Gauke, representatives from six major organisations called for the change to be delayed amid fears that the new iXBRL technology will not be ready in time.
They warned that small and medium-sized businesses would be hit hardest due to delays in the availability of the software and other teething problems.
‘This runs the risk of diverting precious management time away from customers and growth towards red tape and compliance and is not acceptable,’ the letter stated.
The letter also suggests that HM Revenue and Customs (HMRC) should allow companies to submit their accompanying statutory accounts in either iXBRL or PDF format for a period of six months to ease the transition over to the new software.
However, HMRC has insisted that the existing deadline will remain. A spokesperson said: ‘Treasury Ministers will want to consider the representations made by the tax agent representative bodies, but the current plan to mandate the online channel withiXBRL for company tax returns remains in place’.