Corporation tax changes on the horizon

HM Revenue and Customs (HMRC) has issued a reminder about important changes that will be affecting corporation tax this April.

Under the changes, all company tax returns sent in from April 2011 must be filed online for accounting periods ending after 31 March 2010. What’s more, returns will need to be submitted in a data format known as Inline XBRL or iXBRL. Corporation tax payments must likewise be made electronically from April 2011.

The changes are not confined to limited companies. The new rules will apply to other organisations that pay corporation tax, including clubs, societies, associations, co-operatives, charities and other unincorporated bodies.

Companies can file online using either commercial software or HMRC’s own filing software. The latter is specifically aimed at companies with less complex tax affairs. There is already a wide range of commercial software available, with more coming onto the market in the near future.

For any advice on dealing with the new system, we are only a call or email away.