This short FreeAgent guide will walk us through the Taxes section of your accounting software. Your Limited Company will have a corporation tax liability to pay on any profit it makes each year. Not only that, but as a company director that takes the available profit as Dividends, you'll have to complete a self-assessment each year to pay the correct personal tax.
FreeAgent can help us with an estimate of all the company taxes such as corporation tax, VAT and PAYE as long as the software is fully up to date.
All of these can be found under the 'Taxes' tab.
In addition to helping with your company's tax, there is also a self-assessment section which will automatically add any personal income recorded on FreeAgent (such as salary and dividends) into the return.
As a client of Juniper Lynx, you don't need to worry about completing the return form on FreeAgent. However it does help us track what income you have already received during the year. We'll update this for you when we get your information.
Feel free to check this section for an estimate of your personal tax liability.
Just one note on the self-assessment section; FreeAgent will use the previous year's tax thresholds and rates. This is because when a tax year ends on 6th April, you have until the following 31st January to file the return.
For example the 2019/20 tax year will end on 5th April 2020 but the return deadline will be 31st January 2021. So FreeAgent will keep the previous 2019/20 tax rates and allowances on the return form in order to allow the submissions to go through correctly.
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