Since April 2011, legislation has been in place in the UK that requires the vast majority of companies to submit their corporation tax returns and accompanying financial statements in iXBRL format to HMRC.
As a result, companies – especially large companies or companies with complex financial statements – should ensure they have a managed tagging expert in hand to convert their financial statements into an iXBRL-(machine and human readable) format that is compatible with HMRC’s requirements.
Why enlist the help of a managed tagging service provider?
There’s never been a better time to look for a provider. Change is on the way when it comes to how certain companies within the EU will have to prepare their financial statements. Specifically, from 1 January 2020, the European Single Electronic Format (ESEF) will be introduced, which will require issuers with listed securities in EU regulated markets to prepare their annual financial reports in an XHTML format.
Although it’s not fully clear how the ESEF will impact UK businesses given the ongoing uncertainties surrounding Brexit, it’s always best to be prepared in case your company is affected.
Enlisting the assistance of an an experienced managed tagging services provider during this time can be highly beneficial, as they can guide your company through the different tagging processes expected to arise in the near future and keep you updated on the latest developments in the reporting front.
How to choose a good service provider?
A managed tagging service provider can save you a lot of time and effort. You can simply assign the task of converting relevant documents into iXBRL and focus on core work, leaving aside your worries about hiring your own employees, paying for their training as well and managing vacation and sick days.
Choosing the right managed tagging service provider can make a world of difference to your business. A good provider, for instance, should:
- Ensure that your company’s financial statements are converted into an iXBRL format in a timely manner;
- Run tests prior to delivery to ensure that your company’s converted financial statements will be accepted by HMRC; and
- Offer their services at an affordable price which are made known upfront
On the other hand, pick the wrong provider and you may find that you pay too much for a service that prepares a faulty output. For example, you may find that your company’s financial statements are rejected by HMRC, or you may even receive tagged financial statements that do not accurately reflect the information contained in the original source document.
If you’re in doubt about which managed tagging service provider to use, a good rule of thumb is to find a provider with a proven track record of successfully delivering accurate returns to HMRC.
Some other aspects to look for when choosing a provider:
- Be updated with the regulator’s latest requirements and mandates.
- Responsiveness to queries: Your provider must be able to respond to queries quickly and reduce wait time.
- Secure and Reliable methods of handling your financial statements
DataTracks, for example, was one of the first to be recognised by HMRC as a managed tagging service provider, and has experience of preparing over 50,000 iXBRL financial statements to date. Our outputs are pre-validated with regulators and we work to ensure your returns are successfully submitted on time.
We understand the importance of providing a cost-effective service and offers transparent, affordable pricing that takes into account the complexity of your company’s accounts, as well as your reporting deadlines.
Contact us today for more information on how we can help or if you are looking to get your company ready for upcoming submissions.