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Post Info TOPIC: Personal pension


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Personal pension


Hi

I have recently become self employed again and thought I would use Sage instead of spreadsheets, have used before. Have set up and going OK. I take drawings but I also pay from my drawings my pension how do I show this on Sage, I thought a journal but how do I set up my pension on there please.



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Hi Sheran, welcome to the forum.

If youre self-employed as a sole-trader you wont be able to claim the pension payments via your P&L accounts for tax relief. You'd need to put these in the pension section of the self-assessment. But if you want to keep a track of the payments youre making in Sage, separate to your other drawings, you could post them to 2230 in the balance sheet which I believe is the default Pension Fund code. You could post a journal between drawings and pensions to allocate the pension amount. At the year end Id then transfer the balance to drawings to close down the year. It's a nice simple way to keep a track of the payments in Sage.



-- Edited by softie on Wednesday 15th of May 2019 09:24:02 AM

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Sophie x



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Thanks for that I did this and it showed as a liability although did not affect tax so I made a code near drawings which shows OK doesn't show in tax but is a minus figure is that right? I can see what I have paid and then at the end of the year just do a journal back to drawings to zero that code. Sorry to seem like a bit of an idiot.

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Sheran
This is a forum for bookkeepers and accountants rather than business folk.

Suggest you get an Accountant if you have not already, tax planning - key is in the word. Better early rather than after the event.

But no you should not show it as a liability as it is not a liability of the business.

In fact do not show it on sage at all. Keep it away from your business. To keep track - just do it another way.

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Member

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No problem Sheran, ask away. As a sole-trader using Sage its fine to include it in the balance sheet to keep a track of payments made. There's no distinction between you and the business as a sole-trader so no issue to show as a liability/or capital to track the payments. Just put it back to zero at the year end and you'll be fine.



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Sophie x



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Many thanks, will leave as it is thank you for your help.

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Member

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Many thanks, will leave as it is thank you for your help.

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Member

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Casu, I do bookkeeping for several people but it is all on exel, I thought I would do my own on Sage and the issue cropped il.

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Sheran wrote:

Casu, I do bookkeeping for several people but it is all on exel, I thought I would do my own on Sage and the issue cropped il.


Apologies Sheran I was lumping you with the business owners searching for freebies.

Perhaps you can do an intro. Who is your MLR with? What quals? Background etc

As an aside, using your words, if you 'pay' food, mortgage 'from drawings' would you include these in sage? no.

If you MUST put your pension in sage, set it up to drop through to another drawings account as 'drawings-pension'. At least that way it is in the right part of the TB and no need for you adjust at year end.



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Member

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No qualification in bookkeeping just like figures and found some clients in need of help, learning on the job.

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Sheran wrote:

No qualification in bookkeeping just like figures and found some clients in need of help, learning on the job.


You do have MLR though dont you? Who is it with?



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Master Book-keeper

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We crossed Caron, I've deleted my post as you beat me to itbiggrin



-- Edited by Leger on Wednesday 15th of May 2019 01:42:40 PM

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John

Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.



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All the work I do is more administration side so all stuff put on spreadsheets and then it goes off to their accountants.

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Hi Sheran,

Hate to put a spanner in the works, have you thought this through ?

As Casu enquired.... ` You do have MLR though dont you? Who is it with?`


You state in your opening post that you are self employed, this assumes you are being paid to provide a service, although you also state that it is `more administration`, again this would make the assumption that you are providing both admin and accounts related service. Even though you are passing onto clients accountant, you are still required to have MLR in place.

If you have not already done so, please register for MLR.



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Domino VAT Accounting Ltd



Master Book-keeper

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Sheran wrote:

All the work I do is more administration side so all stuff put on spreadsheets and then it goes off to their accountants.


Oh dear! Agree with Julie, you absolutely need MLR cover.

Regardless of the Accountant being involved.

Putting 'stuff' on spreadsheets is being a bookkeeper, even in the loosest sense of the word.

Indeed I would suggest you get some PII cover if you havent already.

Failure to be MLR registered can lead to a rather big fine and indeed imprisonment, under a couple of laws in place.

Please get some before HMRC and the law catch up with you. Or go back to be employed.



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Joanne

Fallows Hall Ltd

Winner - Bookkeeper of the Year 2015, 2016 and 2017

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

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