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

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

Short answer: No. FreeAgent does not submit CT600 returns directly to HMRC. But it can help you prepare the numbers you need. Here's the full picture.

What FreeAgent Does for Corporation Tax

FreeAgent is excellent 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
• ✅ Year-end reports — generates profit & loss and balance sheet reports
• ✅ Corporation tax liability journal — automatically creates the accounting entry
• ✅ MTD for VAT — files VAT returns directly to HMRC

What FreeAgent Does NOT Do

• ❌ File CT600 returns — you cannot submit a CT600 through FreeAgent
• ❌ Generate iXBRL accounts — required for Companies House and HMRC
• ❌ Calculate marginal relief — the CT600's most complex calculation
• ❌ Handle CT600 supplementary pages — CT600A (losses), CT600C (capital gains), etc.
• ❌ Submit to HMRC's XML gateway — the actual CT600 filing mechanism

Why FreeAgent Can't File CT600s

HMRC requires CT600 returns to be filed electronically via their Government Gateway XML API. This requires:

1. HMRC software vendor registration — the software provider must be registered
2. Specific XML format — the CT600 data must be in HMRC's exact schema
3. iXBRL accounts — financial statements must be in inline XBRL format
4. Digital signatures — submissions must be authenticated

Building and maintaining this integration is complex and expensive. FreeAgent has chosen to focus on day-to-day accounting rather than year-end tax filing.

How to File Your CT600 If You Use FreeAgent

You have several options:

Option 1: Taxpipe (£59 per filing)

Taxpipe is purpose-built for CT600 filing. 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

Why Taxpipe works well with FreeAgent:

• FreeAgent gives you accurate accounting data
• Taxpipe handles the CT600 filing, iXBRL accounts, and HMRC submission
• Together, they cover the full cycle for under £300/year (FreeAgent + one Taxpipe filing)

Option 2: Accountant (£300-£800+)

You can pay an accountant to prepare and file your CT600. This is a good option if your company has complex affairs (multiple trades, international income, R&D claims).

Option 3: HMRC Free Filing Service

HMRC's free CT600 filing service is available until 31 March 2026. After that date, you'll need third-party software like Taxpipe.

⚠️ Important: HMRC's free service is basic — no guided wizard, no error checking, no marginal relief calculator. Many directors find it confusing.

FreeAgent vs Taxpipe: What's the Difference?

They're complementary, not competing. Use FreeAgent for your daily accounting, then Taxpipe to file your CT600 once a year.

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
   • You get a confirmation and correlation ID

Frequently Asked Questions

Will FreeAgent ever support CT600 filing?

FreeAgent hasn't announced plans to add CT600 filing. They've focused on self-assessment (SA100) for sole traders and partnership tax returns, but corporation tax filing requires different HMRC integration.

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), you can file your own CT600 using FreeAgent + 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 and creates the accounting journal. It does not generate or file the CT600 return itself. You still need separate software (or an accountant) to actually file with HMRC.

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