From 1 April 2011 onwards, all companies and organisations will have to file company tax returns online for any accounting period ending after 31 March 2010.
From the same date, they will have to pay any corporation tax and related payments due electronically, for example by direct debit.
Under the changes, all corporation tax returns and supporting documents, including accounts and supporting documents, will have to be filed online using the iXBRL format.
However, HM Revenue & Customs (HMRC) has made a concession to smaller charities on the new arrangements, on the basis that the way they prepare accounts means that the accounts template included in the free software provided by HMRC may not be suitable for them.
It says that until it provides free software suitable for smaller charities, HMRC will continue to accept accounts from smaller charities in PDF format. However, computations must be filed in iXBRL, for which the free HMRC software should be suitable.
A smaller charity for the purposes of this arrangement is one where, together with any wholly owned subsidiaries (companies owned by the charity), the combined income does not exceed £6.5 million for the accounting period.