This article describes how to use the FreeAgent mobile app to explain a refundable deposit paid into your bank account from a tenant if you have an unincorporated landlord account in FreeAgent.
If you've returned a refundable deposit to one of your tenants, find out how to explain a rental deposit repaid to a tenant.
Explaining the money paid into your bank account
Open the FreeAgent mobile app on your iOS or Android device and log in using your FreeAgent login details if prompted. If you’ve accessed the app recently, you may be logged in automatically.
Tap the three-lined 'hamburger' icon at the top-left of the FreeAgent mobile app and select 'Banking'.
Choose the relevant bank account from the list and select the transaction that relates to the rental deposit.
Select ‘Rental deposits in’ from the transaction ‘Explained as’ drop-down menu and select ‘Rental Deposits Received’ from the ‘Category’ drop-down menu.
Select ‘Explain transaction’ or ‘Save’ to complete the process.
Paying the deposit into a Tenancy Deposit Scheme
You may need to pay the tenant’s deposit into a Tenancy Deposit Scheme, which will hold the deposit for the duration of the tenancy. For more information on this process, please see HMRC’s guidance. If you’re unsure whether this applies to you, please ask your accountant or HMRC.
When the money is paid out of your business bank account into a Tenancy Deposit Scheme and the transaction has been imported into FreeAgent, navigate to the relevant bank transaction and select ‘Rental deposits out’ from the ‘Explained as’ drop-down menu.
Select ‘Repayment under Rental Deposit Scheme’ from the ‘Category’ drop-down menu.
Select ‘Explain transaction’ or ‘Save’ to complete the process. Find out more about how to explain bank transactions on the FreeAgent mobile app.
Once the tenancy ends and you need to pay the deposit back to the tenant, find out how to explain a rental deposit repaid to a tenant.