Enter pension income for MTD for Income Tax
This article explains how pension income should be reported for Making Tax Digital (MTD) for Income Tax using FreeAgent.
The way to enter pension income for MTD for Income Tax depends on the type of pension income you need to report. For example, UK workplace private pension income is entered on the Employment page, whereas UK state pension income and foreign pension income is entered on the Individual information page.
You can enter the pension income at the end of the tax year to include it in your end-of-year update. This information must be submitted to HMRC before making your final declaration.
Please note:
- FreeAgent’s MTD for Income Tax functionality is available for sole traders and unincorporated landlords. Read our fast-track guides for sole traders and landlords for MTD for Income Tax.
- If you have more than one income stream, for instance if you're self-employed and also a landlord, you'll need a sole trader and an unincorporated landlord account in FreeAgent. You can find out what counts as multiple income streams, as well as tips for managing more than one income stream, in our guide on how to efficiently manage multiple income streams.
- You’ll need full (level 8) access to enter pension income.
- If you use FreeAgent with your accountant, they may restrict your ability to access the MTD for Income Tax area in your account. Please speak to your accountant if you have any questions or want to be able to access this but can't see it. FreeAgent is unable to change these permissions for you.
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We are not authorised by HMRC to provide accounting or tax advice. Therefore, FreeAgent’s support team cannot help you with pension income. If you’re unsure how to enter pension income, please speak to your accountant or to HMRC.
- If you have a FreeAgent Practice Dashboard, you’ll need to switch to your client’s account to follow the steps below once you’ve set up your practice for MTD for Income Tax and signed up your clients.
UK workplace private pension income
UK workplace private pension income is entered on the Employment page under MTD for Income Tax.
Navigate to the ‘Taxes’ tab at the top of the screen and select ‘Income Tax’ from the drop-down menu.
Select the relevant tax year from the list.
Select the ‘Employment’ tab.
Select ‘Yes’ to 'Do you want to declare any employment or occupational pension income?’ and select ‘Add an employment or occupational pension’.
Enter the former employer’s details and select ‘Yes’ to ‘Occupational pension?’.
Select ‘Add Employment’.
Next, select ‘Add financial details’ to add the pension income received.
Enter the amount of taxable pay to date that you’ve received, total tax paid to date, undergraduate and postgraduate loan deductions and select ‘Add Financial Details’ to complete the process.
If you need to change any of the details, select ‘Edit’ and to delete the details, select the cross.
UK state pension income
UK state pension income is entered on the Individual information page under MTD for Income Tax.
Navigate to the ‘Taxes’ tab at the top of the screen and select ‘Income Tax’ from the drop-down menu.
Select the relevant tax year from the list.
Select the ‘Individual information’ tab.
Select ‘Yes’ to ‘Do you want to manage your state benefits for this tax year?’ and select ‘Add a state benefit’.
Enter the details of the state pension income and select ‘Create’ to complete the process.
If you need to change any of the details, select ‘Edit’ and to delete the details, select the cross ('X') button.
Foreign pension income
Foreign pension income is entered on the Individual information page under MTD for Income Tax.
Navigate to the ‘Taxes’ tab at the top of the screen and select ‘Income Tax’ from the drop-down menu.
Select the relevant tax year from the list.
Select the ‘Individual information’ tab.
Select ‘Yes’ to ‘Do you want to declare foreign pension income or overseas pension contributions?’ and select ‘Add foreign pension income’.
Enter the details of the foreign pension income and select ‘Create’ to complete the process.
If you need to change any of the details, select ‘Edit’ and to delete the details, select the cross ('X') button.