You might have heard your accountant mention “iXBRL tagging” and assumed it was just another compliance reporting requirement. But it plays a bigger role than many realise. iXBRL tagging is now central to how financial information is reported, interpreted, and compared – and it can directly affect how your business is understood by HMRC, in the filing of tax computations, and Companies House, where iXBRL tagged accounts are part of the e-filing process.
Here’s what it means in practice, and what you should expect from your accountant.
What is iXBRL tagging?
iXBRL stands for inline eXtensible Business Reporting Language. It’s a global standard that allows financial data to be tagged so computers can read it as clearly as people can. Each line in your financial statements – whether it’s turnover, depreciation, or director pay – gets a digital label that defines exactly what it is.
These tags mean your data can be automatically processed by systems used by Companies House, HMRC, and other bodies. It helps reduce errors, speed up analysis, and improve transparency by ensuring compatibility between accounting systems and helping to identify trends, as each year, more information within financial statements is tagged.
Why does it matter?
Because it’s not optional. If you file your accounts electronically – which most companies now do – iXBRL tagging is required. That includes full statutory accounts and some abridged versions. Submit a file with missing or incorrect tags, and you may find it rejected or flagged.
But this isn’t just about ticking a regulatory box. Tagging changes how your financials are viewed. It allows your numbers to be directly compared with other businesses, year-on-year performance, and industry benchmarks. That can work in your favour – if the tagging is done correctly.
Incorrect or vague tagging can distort how your performance is understood. A mislabelled item can change the story your accounts are telling. That matters if you’re trying to secure funding, attract investment, or simply maintain credibility.
What should your accountant be doing?
Most modern accounting software takes care of the tagging itself. That means human judgement isn’t typically involved in assigning individual tag, but that doesn’t mean your accountant has no role to play.
A good accountant will make sure the final output is fully compliant by reviewing it through validation tools, fixing any tagging errors, and checking for omissions. Just as importantly, they’ll support you with the underlying disclosure requirements – ensuring the right information is being included in the first place.
That’s where the value lies: helping you understand what needs to be disclosed, how it should be presented, and making sure everything is in shape before the system tags it and submits it.
How Gravita can help
At Gravita, we treat iXBRL tagging as part of your business communications – not just a filing formality. We make sure your data is tagged accurately and meaningfully, so your accounts reflect the reality of your operations.
That means fewer delays, fewer rejections, and greater confidence that the right story is being told.
If you’re unsure whether your tagging is being handled properly, or you want to check the quality of your current setup, contact the accounts team at Gravita. We’ll help you get it right.
