HMRC’s latest Agent Update includes notice (on page 5) that, from 1 November 2017, HMRC will reject all accounts not in iXBRL format (including those PDF format), unless a dispensation by HMRC has been granted.

A number of charities currently submit their accounts in PDF form as per the following HMRC guidance:

Chapter 6: Claims and returns:

6.9.8 Unincorporated associations and incorporated charities not required to prepare accounts under the Companies Act or Friendly and Industrial and Provident Societies Act 1968 (for example charities incorporated under the Charities Act and charities established under Royal Charter or by Act of Parliament) must submit computations in iXBRL format, but can continue to submit accounts as a PDF or iXBRL file.

HMRC Internal Manual COTAX

• We accept accounts from smaller charities in PDF format. This is because the accounting principles by which smaller charities prepare accounts mean that the accounts part of the HMRC free software may not be suitable for them. A ‘smaller charity’ for this purpose is one where, together with any wholly owned subsidiaries, that is companies owned by the charity, the combined income does not exceed £6.5 million for the accounting period.
• Any computation forming part of a charity’s company tax return must be in iXBRL format. However, no computation is required at all where the CT600E (Charities and Community Amateur Sports Clubs (CASCs)) supplementary page of the return is completed and confirms that all income and gains of the charity are exempt from tax and have been or will be applied for charitable purposes.

CTG has written to HMRC officials to confirm that this is a relevant HMRC dispensation so no change in process is required by charities. We also sought clarification that no computation is required at all where the CT600E (Charities and Community Amateur Sports Clubs (CASCs)) supplementary page of the return is completed – as per the guidance above.

HMRC officials have responded to confirm that:

“Under our current processing rules there is no intention to change the dispensation arrangements currently in place for charities. We will still allow smaller charities to submit returns with accounts in PDF format and if a supplementary page CT600E is submitted then computations are not required. So no change to how we operate online filing for charities and there are no plans to do so.

“The change relates to those companies for whom there is no exemption/dispensation but currently choose not to file fully in iXBRL, and send in PDF accounts and computations attached to an online return.”