FreeAgent CT600 Filing: Can You File Corporation Tax Through FreeAgent?

FreeAgent CT600 Filing: Can You File Corporation Tax Through FreeAgent?

Short answer: Yes, for most micro-entities. FreeAgent can file CT600 returns directly to HMRC — and generate FRS 105 accounts for Companies House — for the majority of small limited companies. But there are real limitations worth understanding before you rely on it. Here's the full picture.

What FreeAgent Does for Corporation Tax

FreeAgent is comprehensive accounting software for freelancers and small limited companies. For corporation tax, it offers:

• ✅ Profit & loss tracking — all your income and expenses in one place
• ✅ Corporation tax estimates — shows an estimated tax liability on your dashboard
• ✅ CT600 filing to HMRC — files directly to HMRC for most micro-entities, without leaving FreeAgent
• ✅ FRS 105 accounts — generates final accounts in iXBRL format and files them to Companies House
• ✅ Corporation tax liability journal — automatically creates the accounting entry
• ✅ MTD for VAT — files VAT returns directly to HMRC

Note: both FreeAgent and any other CT600 software require a Government Gateway account enrolled for Corporation Tax. You'll need this set up before you can file.

FreeAgent's CT600 Limitations

FreeAgent handles the CT600 well for straightforward micro-entity returns, but does not cover every scenario:

• ❌ Marginal relief — if your profits fall between £50,000 and £250,000, marginal relief is a complex calculation (the 3/200 fraction applied to profits in the marginal band, with thresholds divided by your number of associated companies plus one). FreeAgent may not handle this correctly.
• ❌ CT600 supplementary pages — most supplementary forms are outside FreeAgent's scope (see below)
• ❌ Chargeable gains — profits from selling business assets such as property or shares
• ❌ Complex capital allowances — detailed pool calculations, balancing charges

CT600 Supplementary Pages FreeAgent Doesn't Cover

Many limited companies need supplementary pages alongside the main CT600. FreeAgent doesn't generate any of these:

• CT600A (box 95) — required if your company is a close company (controlled by five or fewer people (or any number of director-participators), which covers most owner-managed limited companies) and has made loans, advances, or other arrangements to directors or shareholders. The outstanding amount triggers a 33.75% Corporation Tax charge, repayable when the loan is repaid (CTA 2010 s.458). This is one of the most common supplementary forms for small companies.
• CT600C (box 105) — required for group and consortium relief, where one company in a group surrenders losses to offset another's taxable profits. Only relevant if your company has a parent company or subsidiaries.
• CT600L (box 142) — required for Research and Development (R&D) tax credit claims under the merged scheme or ERIS.
• CT600E (box 115) — for registered charities and Community Amateur Sports Clubs (CASCs) claiming tax exemption on income and gains.

If any of these apply to your company, you'll need dedicated CT600 software or an accountant to file a complete return.

How to File Your CT600 If FreeAgent Doesn't Cover Your Situation

Option 1: Taxpipe (£59 per filing)

Taxpipe is purpose-built for CT600 filing. It's particularly useful if:

• You don't use FreeAgent for your bookkeeping (QuickBooks, Xero, Sage, or spreadsheets)
• Your profits fall in the marginal relief band (£50,000–£250,000)
• You need to file CT600E for charity or CASC status
• You want more detailed control over the CT600 filing process

The process is simple:

1. Export your figures from FreeAgent (profit & loss, balance sheet)
2. Enter them into Taxpipe's guided wizard — it tells you exactly which numbers go where
3. Taxpipe calculates your tax — including marginal relief and financial year splits
4. Review and submit — Taxpipe files directly to HMRC using your Government Gateway credentials

Option 2: Accountant (£300–£800+)

For complex affairs — multiple trades, overseas income, group structures, director loan tax charges (CT600A), R&D claims — an accountant handles the full picture.

Option 3: HMRC's Free Filing Service

HMRC's free CT600 filing service closed on 31 March 2026. If you were relying on it, you now need third-party software like FreeAgent or Taxpipe.

FreeAgent vs Taxpipe: What's the Difference?

They're complementary for many users. Use FreeAgent for your daily accounting, and if your CT600 situation is more complex, use Taxpipe to handle the filing accurately.

Step-by-Step: FreeAgent to Taxpipe Workflow

1. Complete your year-end in FreeAgent

   • Reconcile all bank transactions
   • Review and categorise expenses
   • Run the year-end process

2. Export your figures

   • Go to Reports → Profit & Loss
   • Note your total income, cost of sales, expenses, and net profit
   • Check your balance sheet for any items that affect CT600 boxes

3. Sign up at Taxpipe

   • Create an account at taxpipe.co.uk
   • Add your company (CRN and UTR)
   • Select your accounting period dates

4. Enter your data

   • Taxpipe's wizard maps FreeAgent categories to CT600 boxes
   • Enter turnover (Box 145), trading profit (Box 155), etc.
   • Taxpipe highlights any issues or missing data

5. Review and pay

   • Check the auto-calculated tax computation
   • Pay £59

6. Submit to HMRC

   • Taxpipe generates the CT600 XML and iXBRL accounts
   • Submits directly to HMRC using your Government Gateway credentials
   • You get a confirmation and correlation ID

Frequently Asked Questions

Does FreeAgent file CT600 returns with HMRC?

Yes — FreeAgent files CT600 returns directly to HMRC for most micro-entities. However, it doesn't handle marginal relief, CT600 supplementary pages (such as CT600A for director loans), or more complex income types like chargeable gains. For those scenarios, you need dedicated CT600 software or an accountant.

Does FreeAgent generate iXBRL accounts?

Yes — FreeAgent generates FRS 105 (micro-entity) final accounts in iXBRL format and files them to Companies House as part of its end-of-year workflow.

Can I import FreeAgent data into Taxpipe automatically?

Not currently — you'll need to enter the key figures manually. We're exploring accounting software integrations for the future.

Do I still need an accountant?

For most simple limited companies (one director, straightforward expenses, no overseas income, profits clearly above or below the marginal relief band), you can file your own CT600 using FreeAgent or Taxpipe. If your affairs are complex, an accountant is still recommended.

What about FreeAgent's "corporation tax" feature?

FreeAgent's corporation tax feature estimates your liability, creates the accounting journal, and — for most micro-entities — files the CT600 directly to HMRC. For companies outside its supported scope (marginal relief, director loans, R&D, group structures), you'll need additional software or an accountant.

Using FreeAgent? File your CT600 with Taxpipe for £59 — guided wizard, automatic tax calculation, and direct HMRC submission.

Related Reading

• QuickBooks CT600 Filing: Can You File Corporation Tax Through QuickBooks?
• Sage CT600 Filing: Can You File Corporation Tax Through Sage?
• Dividends vs Salary: The Tax-Efficient Way to Pay Yourself