The date of the journal entries should be the end of your accounting year. Do not create the whole payable figure that your accountant has calculated as a single entry or you will double-count the payment. If you’re in any doubt about how to do this, please speak to your accountant.
Navigate to the 'Accounting' tab at the top of the screen and select 'Journal Entries' from the drop-down menu.
Next, select 'Add New Journal Entries'.
Increasing the figures
If your accountant's figure is higher than the figure in FreeAgent (i.e. you have more tax to pay than FreeAgent has worked out), then you should credit code ‘820 Corporation Tax’ and debit code ‘502 Corporation Tax Expense’.
Decreasing the figures
If your accountant's figure is lower than the figure in FreeAgent (i.e. you have less tax to pay than FreeAgent has worked out), then you need to credit code ‘502 Corporation Tax Expense’ and debit code ‘820 Corporation Tax’.
Once you have completed this process, your Corporation Tax liability in FreeAgent will be correct, but the journal entries won’t have an impact on your CT600 form or its supporting calculations.
FreeAgent is registered with the Financial Conduct Authority under the Payment Services Regulations 2017 (register no. 799763) for the provision of account information services.
Registered in sunny Scotland No. SC316774 - One Edinburgh Quay, 133 Fountainbridge, Edinburgh, Scotland, UK EH3 9QG