Relief for thousands of charities !!!
iXBRL exemption for charities
We are pleased to announce that following extensive lobbying by Peter Brown FCCA, FCIE, DchA, that HMRC have announced an exemption from the legislation requiring charities to file IXBRL accounts.
It represents a significant saving for the sector (approximately £60 million), and a victory for common sense.
The exceptions can be found on
In essence, no charity will be obliged to file an IXBRL return if either: -
a) their group income is lower than £6.5 million or
b) they complete form CT600E stating that all the income has been applied
for charitable purposes
They will still have to submit tax computations (but NOT accounts) in IXBRL but this will be a
simple process, and there will be a facility on HMRC's web site to assist with this, and there will be no significant cost to the charity sector.
Their trading subsidiaries will have to file in IXBRL in the usual way
It is claimed by HMRC that this is a temporary transitional relief. In
practice, unofficially, we understand that this is somewhat of a fig leaf and that it will remain 'temporary' until significant funding is provided to enable HMRC to develop software to accept IXBRL returns from charities - most unlikely in the present climate!!!