iXBRL technology is not popular with business owners

HMRC has revealed that one in three businesses did not use iXBRL technology to file their corporate tax returns this April.

Out of a total 66,513 returns, 22,000 needed to be re-submitted, the taxman said. Luckily for accountants and business owners, HMRC says it will be sympathetic towards errors during the first year of iXBRL’s implementation.

Phil Robinson, the CEO of IRIS Accountancy Solutions, said a great number of companies have not made proper provisions for iXBRL. Many of these chose to file their April reports early in order to avoid the new format.

He went on to say that businesses need to get to grips with the new technology as soon as possible. Only 7% of companies have their year end in April so the real impact of iXBRL is still to come.

Meanwhile, the Liechtenstein Disclosure Facility is bringing in an average £300,000 for each disclosure.

As at the end of March this year, 475 successful disclosures had been made through the LDF. These netted HMRC a total of £140 million, or £294,000 per disclosure.

The Revenue hopes to have 5,000 LDF registrations by 2015. By March 31st, 1,351 people had already registered but at current levels the Exchequer will only receive around £1.5 billion rather than the £3 billion it had hoped to raise.

The average yield already appears to be impressive, especially when compared against other offshore tax avoidance campaigns. And banks in Liechtenstein are now going to start reviewing their clients to see if they have any links with the UK and that might lead to further disclosures.

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