Ltd Company pension payment

[Smoo]

Hi, could you advise on how to account for pension payments? I’ll try to be as clear as possible.

I am a Ltd Company.

Clients pay a) a fee for the work done and b) a percentage of the fee on top to be paid into my pension.

I also make a contribution to my pension which is deducted and paid by the client.

The rest of the fee is then paid to my agent who takes their commission (including VAT on top).

Therefore, my sales invoice includes the job fee and the client’s pension contribution.

But the money I receive has the following deductions:

a) the client’s pension contribution
b) my own pension contribution
c) the agent’s commission plus VAT

Therefore the amount received in my banking feed is much less than the amount I invoice for in my Sales log. I think know how to account for the agent commission (from a previous post!) but how do I account for the pension payments? It would make life a lot easier if my banking feed matched my sales invoices.

Thanks!

[Smoo]

Just giving a bump to see if anyone can give advice. Thanks in advance!

[QFSteve]

Hello @Smoo

You could use a merchant account for this.

First Create a separate merchant account in the banking screen for the agent.

• Tag the money received as a bank transfer from the merchant account (agent).
• Create the invoice for the client including the client’s pension contribution
• Pay the invoice using the merchant account
• Create an invoice from the agent for their services including the vat