One of my clients has started contributing to a personal pension, via a Ltd Company.
He pays £100 a month through payroll and Ltd Co pays £100 a month.
I just want to check the best way of accounting for this. My thought is to credit expenses: pensions on the payroll journal then debit expenses: pensions when paying over to the pensions company, which will leave a net debit of £100
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Hi John
Did you mean credit liabilities pensions, rather than credit expenses, so you are reflecting what is owed before its paid across to the pensions peeps?
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Liabilities was my first thought, then I thought of shoving it in expenses, but in hindsight that would create a false credit in the expenses until the pension was paid.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
