FreeAgent payroll for accountants
Please note that FreeAgent's payroll functionality won't be available for clients who have unincorporated landlord accounts or prepare their accounts using cash basis accounting.
If you are currently filing your client’s payroll outside of FreeAgent and moving their payroll to FreeAgent during the tax year, find out how to move payroll to FreeAgent from another software provider.
If you are currently filing your client’s payroll outside of FreeAgent and won’t be using FreeAgent’s payroll functionality, you can record your client’s payroll by creating journal entries.
How to set up payroll
1. Add each individual as a user
In order to set up payroll in FreeAgent, each employee that will be included on your client’s payroll will need to be added as a user in your client’s FreeAgent account.
2. Enter the client’s company details
You'll need to enter the PAYE and Accounts Office reference numbers in your client’s ‘Company Details’. If your client has a limited company account, you can also enter their Corporation Tax reference number if you wish.
3. Choose when to start running payroll from and add the first user
Navigate to the ‘Payroll’ area of your client’s account and choose which tax year and month you want to start running payroll from in FreeAgent.
Next, use the drop-down menu to select the first user to add to your client’s payroll and select ‘Set up payroll’. You’ll need to add each user individually.
4. Create a payroll profile for each employee on your client’s payroll
You’ll need to create a payroll profile for each employee that will be included in your client’s payroll. These will contain details of each individual's monthly pay, deductions, pension contributions and starting/leaving dates.
Useful resources for setting up payroll
You might find the following articles useful for setting up payroll in your client’s account:
- How to set up payroll
- How to create a payroll profile
- How to add an emergency tax code to an employee’s payroll profile
- How to select the National Insurance contribution basis in a limited company director’s payroll profile
- How to enable student loan deductions in FreeAgent's payroll
- What’s the difference between net pay and relief at source pension contributions?
- The Employment Allowance
- How FreeAgent supports automatic enrolment for workplace pensions
How to submit payroll to HMRC
Once you’ve set up payroll in your client’s account, you can prepare the payslips.
Then, select the payment date, edit any payslips if necessary and run and report the RTI submission to HMRC.
If you’re running payroll for multiple clients in FreeAgent, you can file clients’ payroll in bulk from your Practice Dashboard.
Useful resources for running payroll
You might find the following articles useful for running payroll in your client’s account:
- How to prepare and run payroll
- How to file missing payroll submissions after the end of a tax year
- How FreeAgent handles statutory pay
- How to process statutory pay received in advance
- How to show pension contributions under salary sacrifice
- Payroll error message: authentication failure
- Error codes you might receive when submitting your payroll
- How to close your payroll
How to make payroll corrections
Once you’ve filed payroll to HMRC using FreeAgent, it’s not possible to delete or undo the payroll submission. However, if you need to make any corrections to an employee’s pay or deductions in the current tax year after filing the payroll, you can edit the relevant payslip, which will submit the correct year-to-date figures to HMRC in your next submission.
If you need to make corrections in a previous tax year or to a month 12 payslip, find out how to make a payroll correction for a previous tax year.
How to add and remove employees from payroll
You might find the following articles useful for adding and removing employees from payroll in your client’s account:
- How to add a new employee to payroll
- How to add a new employee with no P45 to payroll
- How to add a new employee with no National Insurance (NI) number to payroll
- How to add a returning employee to payroll
- How to remove an employee from your payroll when they leave your business
How to access client forms
You might find the following articles useful for accessing the relevant forms in your client’s account: