In view of the impending move to online filing of Company Tax Returns from 1 April 2011, HMRC have published guidance to address possible concerns and uncertainties that Agents and Taxpayers may have about the transition to this significant change.

From 1 April 2011 all Company Tax Returns for periods ending after 31 March 2010 must be filed online. The HMRC document, entitled “Mandatory online filing of Company Tax Returns: managing the transition” comments:

• HMRC acknowledge that this is a significant change and are keen to stress that their overall approach will be to provide advice and support to get it right and not to reject returns or penalise taxpayers for getting things wrong.
• HMRC want to encourage those affected to make a ‘reasonable’ attempt to submit iXBRL accounts and computations-without fear of penalties if the new iXBRL requirement isn't fully met first time.
• Agents and Taxpayers should aim for XBRL tagging of computations and accounts to be completed to the level of the XBRL ‘minimum tagging lists’ which HMRC published last year.
• Returns will clear HMRC's electronic Gateway as long as a small number of key items are tagged.

HMRC stress that they will not reject any return where a “reasonable” attempt to comply with the iXBRL requirement has been made.

This HMRC statement, which attempts to address industry concerns, is useful reading in advance of the new filing regime. Go to http://www.hmrc.gov.uk/ ct/mandatory-online-filing.pdf