Pensions, how to record?

[RedRiteUK]

Hey all,

I make monthly contributions to a pension fund and wanting to record this so when I send accounts to HMRC/DWP it includes the pension payments, as well as giving me a more accurate tally of profits after pension payments are made.
I can not find a purchase category for it, and do not link up my bank account since it is a personal bank account at the moment.
I am a sole trader if that makes a difference.

[QFMathew]

Hi @RedRiteUK

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…

Personal Pension Premiums are paid net of tax relief and you will get basic rate relief at source. So for a £1,000 contribution, you will usually pay the provider £800.

I hope that helps, but please don’t hesitate to ask any further questions you may have.

[RedRiteUK]

Hey, Thanks for your reply. I did end up doing that but was hoping there was a way for it to show in my profit and loss which I have to provide to the benefits office. Will have to print the journal off too.

Thanks again