iXBRL explained: why UK companies need tagged accounts
iXBRL turns financial statements and tax computations into documents that humans can read and HMRC systems can process.
iXBRL, or Inline XBRL, is used to make accounts and computations machine-readable while preserving a human-readable document. GOV.UK explains that XBRL is used in the UK for filing company accounts in iXBRL format to HMRC and Companies House. GOV.UK XBRL guide for businesses.
Why UK companies need iXBRL
HMRC guidance states that Corporation Tax customers must file Company Tax Returns online with accounts and computations in Inline eXtensible Business Reporting Language format. HMRC XBRL tagging guidance.
How tagging works
Tags identify accounting concepts such as turnover, profit, fixed assets, debtors and tax. Most businesses using commercial software will not manually tag every item, but they still need to review whether the accounts and computations are complete and consistent.
Companies House software filing
Companies House says that when company accounts are filed using commercial software, it receives and processes them in iXBRL format, which combines HTML with machine-readable tags. Companies House software filing guidance.
Common iXBRL issues
- Incorrect taxonomy selection.
- Missing tags on primary statements.
- Inconsistent signs for expenses and credits.
- Accounts that do not agree to the tax computation.
- Late software checks after the filing deadline is close.
Frequently asked questions
Clear answers to common questions on this topic.
What does iXBRL mean?
iXBRL means Inline eXtensible Business Reporting Language, a format that combines human-readable accounts with machine-readable tags.
Do Company Tax Returns need iXBRL accounts?
HMRC guidance says Corporation Tax customers must file online with accounts and computations in iXBRL format.
Do businesses need to tag accounts manually?
Often no. Commercial software usually inserts many tags, but businesses and advisers should still review the output.
Need help applying this to your business?
Tell us your issue and we can connect you with a suitable UK adviser for tax, accounts, audit or payroll support.
Request a consultation ›