In the second part to our FreeAgent FAQ series, we’re answering all of your most common ‘Where can I find’ questions. We’ll be addressing where you can see your corporation tax, personal tax as well as other documents you need to run your small business accounts smoothly. You can read part one of our FAQ’s (Getting started with FreeAgent) here.
Where can I see my Corporation Tax?
The Corporation Tax screen is under the Taxes menu. If you’re a sole trader, or your business is a partnership, you won’t see this screen because your business doesn’t pay Corporation Tax.
Choose which tax year you’d like to see the figures for and select it from the list, this brings up the Corporation Tax screen.
Entering your company trading start date
If your company started trading on a day after its incorporation date, you will need to enter that date in your FreeAgent settings. To do that, choose ‘Settings’ from the drop-down menu at the top right-hand side of the screen and select ‘Accounting dates’ from the menu of options. Enter your company trading start date and save your changes. Please note that you won’t be able to record any of your company’s invoiced or cash sales that took places before this date in FreeAgent.
Your company’s trading start date will trigger a new Corporation Tax accounting period in accordance with HMRC’s rules. This means that a new Corporation Tax return will start on your company’s trading start date. If you’re not sure what this means, or you’re unsure what your trading start date should be, get in touch with Driver Unlimited for help.
How FreeAgent projects your company’s Corporation Tax
FreeAgent produces a full basic computation by using the figures that you’ve put into your accounts. Therefore, it’s important to enter capital assets properly and to make sure your costs go into the right category, because some costs, such as business entertaining, have to be added back to the profit in your accounts before Corporation Tax is worked out.
Tax on the overview screen
FreeAgent will work out the tac according to the transactions in your accounts and put this figure on the tax timeline on the overview screen, so that you can see a projection of how much Corporation Tax the company is due to pay. It is important to remember that this figure will not include journal entries you make direct to codes 502 and 820.
This lets you set money aside in plenty of time to pay the tax. Remember that the Corporation Tax payment due three months earlier than your actual Corporation Tax return. The tax timeline highlights this for you.
Where can I see my documents?
Your general company files and documents can be stored in the Files section of FreeAgent. This storage area isn’t intended for receipts which you attach to your expenses and bills, it’s for general files and documents that you might find useful to have handy while you’re working on your accounts. To begin, select Files from the drop-down menu, to see any files you already have saved in FreeAgent.
Uploading a new file
- To upload a new file, simply choose the file you wish to upload from your device.
- You can name or rename any files using the rename option as a future reference for your documents.
- You can also email files into your FreeAgent account. Simply attach the file to an ordinary email message and email it to firstname.lastname@example.org and the file will appear in your Files area (for this to work you must use the email address that you log into FreeAgent with). You can upload files up to 5MB in size.
For further guidance on the FreeAgent app and for any assistance you may need contact your Sidekick advisor, or if you like the look of FreeAgent and want to get started, get in touch with us today!