Posting a bank payment into Directors private pension fund - The Book-keepers Forum (UK)

Knighton Bookkeeper · Newbie

Posting a bank payment into Directors private pension fund

Leger · Master Book-keeper

Hi Marion, welcome to the forum

Bank payment to 7007?

-- Edited by Leger on Wednesday 14th of September 2022 09:31:08 AM

Knighton Bookkeeper · Newbie

Many thanks! Yes ill post it to 7007

Marion

HelenF02 · Member

Is that even correct though? Zero details have even been given re tax deductibility of the pension payment. No discussion about if it is W&E. Within limits. Taper issue. etc. Best you ask the clients accountant if allowable, supply much more information, which may include personal details you dont wish to divulge, or set up a nominal code called refer accountant and code it to there so the accountant at least has a chance at year end to sort it out.

Leger · Master Book-keeper

HelenF02 wrote:
Is that even correct though? Zero details have even been given re tax deductibility of the pension payment. No discussion about if it is W&E. Within limits. Taper issue. etc. Best you ask the clients accountant if allowable, supply much more information, which may include personal details you dont wish to divulge, or set up a nominal code called refer accountant and code it to there so the accountant at least has a chance at year end to sort it out.

Hi Helen

The question was where should it be coded to. Surely it's not the bookkeepers responsibility to check the criteria, especially as (assumedly) the payment has already been made? The accountant should pick this up anyway although your suggestion to code it to things the accountant needs to check is a good one, and better than my suggestion if there's a question mark on it.

Truemanbrown · Senior Member

Knighton Bookkeeper wrote:
Hi,
I'm posting a payment from a Ltd company into the company directors private pension fund. Can anyone advise how to code this in SAGE please.
Many thanks for your help
M

-- Edited by Knighton Bookkeeper on Tuesday 13th of September 2022 05:24:10 PM
Can you tell me how the pension provider has treated the payment. It should be either:-

gross (i.e. there is a contract between the pension provider and the company) and can be posted to 7007;
with tax relief at source (i.e. there is a contract between the pension provider and the company director) which suggests that should go to the company director's loan. You may need to set up a new account around 2350 for Director's Loan Account.