Company Tax Returns for Smaller Charities: Filing Online-Format for Accounts
HMRC have published transitional arrangements for smaller charities required to file their accounts online using iXBRL.
If a charity has to prepare accounts under the Companies Act 2006 or Friendly and Industrial and Provident Societies Act 1968, the new rules require the accounts and computations to be filed in iXBRL format.
However, HMRC recognises that the accounting principles by which smaller charities prepare accounts mean that the accounts template included in the free software provided by HMRC may not be suitable for them. Until HMRC provides free software that is suitable for smaller charities, HMRC will continue to accept accounts from smaller charities in PDF format. Computations must be filed in iXBRL format but the free HMRC software should be suitable for these.
A ‘smaller charity’ for the purposes of this arrangement is one where, together with any wholly owned subsidiaries (companies owned by the charity), the combined income does not exceed £6.5 million for the accounting period.