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How to make corrections after filing End of Year reports

This article explains which options are available if you need to make a correction in your accounts after you’ve filed, or partially filed, your Final Accounts and Corporation Tax return in FreeAgent.

FreeAgent’s End of Year accounts for a limited company includes a full set of accounts, a shortened version and Corporation Tax (CT600) return(s). Once you have finalised your company’s End of Year accounts by adding your signature, this places an initial lock on your accounts to prevent you from making any further changes to your end of year accounts. You can only remove this lock if you haven’t yet filed your Final Accounts or Corporation Tax return through FreeAgent.

Once you’ve filed either your Final Accounts or Corporation Tax return through FreeAgent, you’ll no longer be able to remove this lock on your accounts. Please see below for details on your options in each of these scenarios, including when both Final Accounts and Corporation Tax returns have been filed.

Please note that FreeAgent can’t advise which option you should choose and we would strongly recommend discussing the options with your accountant before deciding which is the best way forward for your business.

If you haven’t yet filed your Final Accounts or Corporation Tax return

If you haven’t yet filed either your Final Accounts or Corporation Tax return through FreeAgent, you can remove your signature from the End of Year report and make changes to your accounts. Please note that if you’ve manually marked your Final Accounts or Corporation Tax return (or both) as filed, you’ll need to mark these as unfiled before you can remove the signature.

Marking your Final Accounts and Corporation Tax return as unfiled

To mark your Final Accounts report as unfiled, navigate to the relevant Final Accounts report, select the green ‘Filed’ button and select ‘Mark as unfiled’.

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To mark your Corporation Tax return as unfiled, navigate to the relevant Corporation Tax return, select the green ‘Filed’ button and select ‘Mark as unfiled’.

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Then follow the steps below to remove your signature.

Removing your signature from your End of Year report

Navigate to the ‘Accounting’ tab at the top of the screen and select ‘End of Year’ from the drop-down menu.

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Select ‘Remove signature’.

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Select ‘OK’ in the pop-up window to complete the process.

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You’ll now be able to make changes to your accounts and finalise your End of Year report again once you’ve made the relevant changes.

If your Final Accounts have been filed but Corporation Tax return hasn’t been filed yet

If you’ve filed your Final Accounts to Companies House through FreeAgent, but haven’t filed your Corporation Tax return (CT600) yet, you won’t be able to remove the lock on your accounts to make corrections before submitting your CT600 to HMRC.

In this scenario, you can file your Corporation Tax return through FreeAgent with your Final Accounts as they currently are. This will allow you to include any corrections for your current year’s accounts when you submit your Final Accounts and Corporation Tax return next year. Section 5.4 of the FRS 105 reporting standards for micro entities states that corrections can be made in the following year’s accounts.

Alternatively, you can file amended accounts with Companies House. Please note that amended accounts need to be filed in paper format, therefore it is not possible to do this through FreeAgent. For more information, please see the following HMRC guidance.

If you choose to file amended accounts with Companies House, you would then need to file your Corporation Tax return outside of FreeAgent as it’s not possible to adjust your accounts to note that they are ‘Amended’ accounts. You will therefore need to file your Corporation Tax return with HMRC directly or by using another accounting software package. You would then manually mark your Corporation Tax return as filed in FreeAgent by navigating to the relevant Corporation Tax return, selecting the grey ‘Unfiled’ button and selecting ‘Mark as filed’.

Please note that if you go ahead with this option, any amendments you make will not be included in your FreeAgent account, which will have an impact on the following year’s comparative figures.

If you’re unsure whether you should make the adjustment this year or next year, please ask your accountant.

If your Corporation Tax return has been filed but Final Accounts haven’t been filed yet

If you’ve filed your Corporation Tax return (CT600) to HMRC through FreeAgent, but haven’t filed your Final Accounts yet, you won’t be able to remove the lock on your accounts to make corrections before submitting your Final Accounts to Companies House.

In this scenario, you can file your Final Accounts through FreeAgent as they currently are. This would allow you to include any corrections for your current year’s accounts when you submit your Final Accounts and Corporation Tax return next year. Section 5.4 of the FRS 105 reporting standards for micro entities states that corrections can be made in the following year’s accounts.

Alternatively, you can ask our Technical Team to remove the CT600 filing confirmation from FreeAgent. Please note that this would not 'un-file' the CT600 with HMRC but would remove the record of it being filed from your FreeAgent account.

This would allow you to amend your accounts, including your accounting dates and company details if you’re receiving rejection messages from Companies House when trying to submit your Final Accounts. Once you’ve amended your accounts, you could then file your Final Accounts to Companies House through FreeAgent.

However, you would need to consider whether this would then require you to file an amended CT600 with HMRC to match your final accounts, otherwise you'd have two different sets of accounts on record, one with Companies House and the other with HMRC. Please note that if you do need to file an amended CT600, this cannot be submitted through FreeAgent. You will therefore need to file an amended CT600 with HMRC directly or by using another accounting software package.

If you’d like our Technical Team to remove the CT600 filing confirmation in FreeAgent, please contact our support team by selecting the blue ‘Help’ button in the bottom-right corner of the screen. They will require you to confirm that you understand that this might change reports that have already been filed and/or are locked currently, and that the HMRC submission receipt/IR mark will be removed from your FreeAgent account.

We would also advise that you take copies of all relevant reports that might be needed before the filing confirmation is removed, so that you have a record of these outside of FreeAgent should you need to look back at how they were before the filing confirmation and account lock were removed, and any changes subsequently made.

If you’re unsure which option you should choose, please ask your accountant.

If your Final Accounts and Corporation Tax return have both been filed

If you have filed your Final Accounts to Companies House and Corporation Tax return to HMRC through FreeAgent, you won’t be able to remove the lock on your accounts to make corrections.

In this scenario, you would only be able to include any corrections for your current year’s accounts when you submit your Final Accounts and Corporation Tax return next year.

The FRS 105 reporting standards for micro entities states that - 5.4 An entity shall recognise all items of income and expense in a period in profit or loss unless an FRS requires or permits otherwise, or unless prohibited by the Act. For example, under this FRS, the effects of corrections of material errors and changes in accounting policies are presented as retrospective adjustments of prior periods rather than as part of profit or loss in the period in which they arise (see Section 8 Accounting Policies, Estimates and Errors).

There’s also further guidance under - 8.14 - 8.17 Corrections of prior period errors - To the extent practicable, a micro-entity shall correct a material prior period error retrospectively in the first financial statements authorised for issue after its discovery.

Alternatively, you can file amended accounts with Companies House and file an amended CT600 with HMRC outside of FreeAgent.

Please note that amended accounts with Companies House need to be filed in paper format, therefore it is not possible to do that through FreeAgent. For more information, please see the following HMRC guidance.

You would also need to file an amended CT600 outside of FreeAgent, either with HMRC directly or by using another accounting software package.

If you go ahead with this option, it’s important to note that any amendments you make will not be included in your FreeAgent account, which may have an impact on the following year’s comparative figures.

If you’re unsure which option you should choose, please ask your accountant.

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