Calculate your clients' capital allowances

You can now calculate capital allowances on behalf of your UK limited company clients in FreeAgent. This new functionality is our first step towards delivering Corporation Tax filing in FreeAgent.

When a limited company client has explained one or more of their transactions as capital asset purchases, you can access our updated ‘Capital Assets’ reporting area. Here, you’ll find a new asset timeline, which highlights any important accounting and tax events associated with your client’s capital assets. You can then filter which asset types you view.

FreeAgent automatically calculates your clients’ capital allowances based on how their assets are categorised. It incorporates the annual investment allowance (AIA), first year allowances and written down allowances (WDA) on the main pool and special pool. Asset’s will be eligible for annual investment allowance by default.

You can edit the tax treatment for all assets purchased within a Corporation Tax period ending on or after 23rd July 2020.

You can then view a breakdown of your client’s capital allowances computation in the Corporation Tax area of their FreeAgent account.

Check out this Knowledge Base article to find out more about our new capital allowances functionality in FreeAgent.