FreeAgent Integration

Connecting your FreeAgent account to Taxd transitions your limited company business from manual ledger extraction into an automated, year-end compliance workflow. Rather than manually copying numbers from trial balance sheets or risking formatting errors during file handling, the integration builds a secure digital link via direct API communication.

This secure data bridge extracts your live transactional records to generate your regulatory Year-End Statutory Accounts and your Form CT600 Corporation Tax Return seamlessly.

1. Automated Trial Balance Ingestion

The core advantage of the FreeAgent API link is the elimination of manual transcriptions. Once securely authenticated, the data bridge isolates the specific financial blocks required for final statutory reporting:

• The Revenue Matrix: Extracts your operational invoicing, sales receipts, and credit notes to confirm your gross turnover.
• The Ledger Balances: Discovers your exact spending categories, including asset tracking, operational expenses, liabilities, and retained capital allocations.

Because the financial files transfer via direct software communication, your tax documentation mirrors your daily bookkeeping perfectly, eliminating manual input mistakes that can trigger compliance reviews by HMRC.

2. Regulatory Mapping and Tax Adjustments

Standard commercial accounting codes utilized in daily business operations do not always map identically to the rigid fields required by Companies House or the tax blocks on Form CT600. The integration automates this translation layer:

• Statutory Framework Alignment: Automatically reads your trial balance variables and maps them to the correct disclosure positions for micro-entity accounts (FRS 105) or small company guidelines.
• Disallowable Expenditure Filtering: Business expenses that are not tax-deductible—such as corporate client entertainment or non-allowable fines—are flagged systematically during ingestion. The calculation engine automatically adds these amounts back to your net book profits to establish your true taxable corporate profit base, ensuring full legislative compliance.

3. Preserving the MTD Digital Link Chain

Under Making Tax Digital (MTD) statutory guidelines, maintaining an unbroken electronic record chain is a strict legal requirement. Transferring financial data by manually copying figures from your screen and re-typing them into separate software breaks your digital link compliance, exposing your business to administrative record-keeping fines.

The FreeAgent integration satisfies these exact legislative rules. Because the operational totals move exclusively through automated API webhooks, it qualifies as an uncompromised Digital Link. This provides an uninterrupted, automated audit trail reaching from your initial bank feed, through your FreeAgent software, and straight into your finalized filing bundle.

4. Final Submission and Asset Tagging

Once your ledger structure is successfully synchronized and approved, the platform prepares your finalized filing components:

1. The Comprehensive Statutory Accounts: Generates your definitive small business accounts, ready for secure electronic transmission to Companies House.
2. The CT600 Calculation Engine: Computes your precise Corporation Tax bill, factoring in current main-rate brackets and marginal small-profits relief allocations.
3. Mandatory iXBRL Data Tagging: The platform automatically applies required inline eXtensible Business Reporting Language (iXBRL) tags across all financial declarations, satisfying HMRC's explicit digital schema standards.

Key Points to Remember

• The FreeAgent integration establishes a secure API link to completely eliminate manual end-of-year data entry.
• Trial balance data is extracted automatically from your live ledger files.
• Smart translation rules map your day-to-day transaction codes into compliant CT600 and FRS 105 statutory disclosures.
• Moving files via direct API satisfies strict MTD record-keeping digital link parameters.
• Non-allowable corporate expenses like business entertainment are adjusted automatically during data ingestion.
• The system builds, tags, and transmits final corporate returns to HMRC and Companies House in full iXBRL format.