Most UK businesses have done little or no planning to meet electronic filing (e-filing) requirements set by HM Revenue & Customs (HMRC), according to a survey by Deloitte.
All UK corporation tax filings will have to be filed through e-filing as of 31 March 2011 and tax returns, tax computations and statutory financial accounts must be tagged using Inline eXtensible Business Reporting Language (iXBRL).
Just 4% of survey respondents said they had chosen a solution or service provider to meet the e-filing requirements set by HMRC, while 44% had done no planning and 49% had only started to assess solutions.
Just 21% of respondents said the move to iXBRL is a driver to transform their accounts preparation process but a massive 71% saw it as additional compliance work.
Deloitte has recommended a two stage strategy for companies – complying with HMRC’s ‘soft landing’ in the short term, alongside improving the accounts process and tax compliance process during the next two to three years.
More than 100 tax professionals from a range of UK businesses participated in the survey.