Electronic accounts to be made mandatory by 2013

News Article - 04 February 2011
Category: Regulatory

Electronic account submissions will be mandatory from 2013, according to a recent announcement from Companies House. The official registrar of UK companies will also push for annual returns, incorporations and company changes to be filed electronically.

More than 98 per cent of firms registered with Companies House, representing standard company types, are expected to file electronically by March 2013.

The move to electronic submission has been seen by analysts as evidence of increasing unity between Companies House and HM Revenue and Customs (HMRC). In 2009 Companies House announced it would join HMRC in accepting certain filings in the new iXBRL format. Electronic submission has become increasingly popular in recent years, reducing the administrative burden for all parties involved.

Advisers were initially concerned that Companies House would add to the tax burden by adopting a different electronic filing system than the one chosen by HMRC. The concern was particularly pervasive amongst small and medium sized enterprises who were already worried about the administrative and financial impact of switching to iXBRL.

The announcement will be subject to consultation with the Government and other stakeholders. A limited number of remaining company types and transactions will be able to file paper returns for the time being until Companies House has expanded the electronic service.

"For accounts we have e-enabled filing using XBRL & iXBRL, and we've agreed a consistent approach with HMRC. We are continuing to develop our services, and will be consulting on our plans later in the year," said a Companies House spokeswoman.

Access understands the pressures of adapting to new accounting standards. Access' business software is supplied with an interface to the major accounts production packages, helping accountants more easily extract the financial data necessary to prepare accounts using the iXBRL standard.

Companies concerned about the effect iXBRL will have on current business operations should speak to their accountant directly.

Article keywords: Electronic account submissions, Companies House, HM Revenue and Customs, HMRC, iXBRL, XBRL, Access business software, accounts production packages

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