Logging personal pension payments

[hsoley20]

I have set up a QuickFile account for Making Tax Digital coming in next year…

I only have a few entries for income and outgoings each month, so it’s very basic.

My question is how do I log my personal pension payments each month? I can’t see any relevant categories under “Purchases”.

I haven’t automatically linked my business bank account, but the personal pension payments come out of my personal account, as they have done for years before I came self-employed anyway.

I’m getting a little stressed with the MTD quarterly reports looming next year, so any help would be appreciated.

[QFSteve]

Hi @hsoley20

The below guide may be of help to you:

Processing Pension Contributions

As sole traders are self employed they do not have an employer to make pension contributions on their behalf. Therefore, as a sole trader any pension contributions you make into you own pension, will effectively be treated as Drawings, the business is unable to make the contributions for you. Employer’s Only Pension Contribution: If as a sole trader you employ other individuals and pay employer pension contributions on their behalf, the contributions will be treated as a business expense, ther…

[hsoley20]

Thanks, Steve.

I do not employ anyone else, so the only part of that thread that seems to apply to me is:

“As sole traders are self employed they do not have an employer to make pension contributions on their behalf. Therefore, as a sole trader any pension contributions you make into you own pension, will effectively be treated as Drawings, the business is unable to make the contributions for you.”

Does this mean I just log my monthly payment and tag it as “Proprietor Drawings”?

[ian_roberts]

@hsoley20

Does this mean I just log my monthly payment and tag it as “Proprietor Drawings”?

Yes. You’re drawing money out of the business for personal use (in this case paying into your personal pension), it’s not an expense of the business.

[Ryl]

HI

Can I ask a question on this,if Ian is paying his pension out of his personal account and not the business bank account why does he need to record it at all, as he’s not drawing from the business?

[cbstephensaca]

He doesn’t. It should only be recorded in QF if it’s coming out of the business account. However, if the business and personal account are essentially the same, then it should be logged as drawings as it’s not a business expense.