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.
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
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.
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.
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.
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.
