Understanding your requirements

3 minute read

This section is for preparers responsible for producing annual reports and accounts. It explains:

  • What are the requirements?
  • Which rules apply to you
  • Your practical options for meeting those rules
  • What types of tools can help

Step 1: What are the requirements?

Your requirements depend on where you file your accounts and why you are filing them. In the UK, three bodies are relevant.

HMRC Companies House FCA
  • Legislation, which came into force on 1 January 2010, means that it is compulsory for companies to send their Company Tax Returns online using iXBRL for accounts and computations.
  • These filings are not public
  • You must use taxonomies accepted by HMRC
  • Use the FRC taxonomies;

This applies to most UK companies within the corporation tax regime.
  • Companies may file digitally tagged Annual Financial Report with Companies House
  • This is currently voluntary, but digital filing requirements are increasing with around 2.2m companies already filing in XBRL.
  • Specific tags are required if you want your structured report to meet Companies House requirements.
  • Companies can use the UK-IFRS, UK FRS or UKSEF taxonomy (in certain circumstances)
  • Company charities have the option to file digitally and use the UK Charities Taxonomy.
  • If your company has securities admitted to trading on a UK regulated market (for example, the LSE Main Market): You must file your Annual Financial Report in XHTML
    • Important: AIM is not a regulated market for these purposes.
  • If you prepare IFRS consolidated accounts, those statements must also be digitally tagged (unless a specific exemption applies)
  • Specific tags are required if you want your structured report to meet FCA requirements.
  • The report must be filed with the FCA’s National Storage Mechanism (NSM) within 4 months of the year end.
  • Companies can use either the ESEF taxonomy or the UKSEF taxonomy (if they want to dual-file to Companies House).
  • The XHTML report is the official Annual Financial Report under the FCA regulations.

To find out more about the HMRC mandate see the

HMRC's Businesses XBRL guide.

If you want to understand more about the Companies House requirements their Technical interface specifications for Companies House software guidance explains:

  • what formats are accepted
  • which tags are required
  • which software solutions are compatible

This requirement applies under UK disclosure rules. For more information about the specifics of the requirements refer to the FCA website:

Step 2: What are my options for producing a structured report?

Think of XBRL as adding standardised labels to your financial data, like shipping labels on parcels. These labels, called tags, come from a taxonomy, which acts as the official labelling guide.

There are two main workflow options:

  • Bolt-on approach: Convert your final PDF report into XHTML and apply digital tags. This is common but can extend timelines as one process typically has to complete before the tagging process can start.
  • Integrated approach: Use tools that apply digital tags during report preparation and design. This offers better control and efficiency but may require new software.

Bolt-on (tag at the end)

What this looks like

  • Prepare your annual report as you do today (Word → PDF)
  • Convert the final report into XHTML
  • Apply digital tags after the report is complete, this can be done directly with software or outsourced to a third party.

Pros

  • Minimal change to existing processes
  • Often quicker to adopt initially

Cons

  • Tagging starts late in the timetable
  • Changes to the report can require retagging
  • Less control over quality unless well reviewed

Integrated (tag and structure as you prepare)

What this looks like

  • Digital tags are applied during report preparation
  • The digital document is the main output from the process
  • Tagging is embedded into the reporting workflow

Pros

  • Better control and consistency
  • Easier to roll forward year-on-year
  • Issues are identified earlier

Cons

  • May require new tools or process changes
  • More initial setup effort

Step 3: What tools will help me?

Most preparers use software or service providers to support structured reporting. These tools do not “do the thinking for you”, but they make the process manageable.

Tagging software simplifies the process by linking the annual report to the taxonomy behind the scenes. Some tools integrate with existing accounting systems; others work from a PDF or Word report. The choice of solution depends on your workflow and budget.

What tagging software typically helps with

  • Selecting the correct taxonomy entry point
  • Searching and applying the right tags
  • Attaching the correct context (company, period)
  • Applying the correct units (for example, GBP, shares)
  • Validating files before submission to check they will file
  • Reusing tags from prior years

The accounting judgement still sits with the preparer. Software supports the process but does not replace a thorough review.

Finding suitable software

Official lists are available from:

When selecting a tool, consider:

  • which regulator(s) you file to
  • whether you want bolt-on or integrated tagging
  • how easy it is to review and correct tags
  • how well it supports roll forward – this allows you to automatically apply and update last year’s tagging to this year’s report

Now that you have understood the requirements it is time to understand more about the taxonomy itself.

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