You can pay into a pension scheme from your business account, but how you record it depends on how your business is set up. Keeping these payments correctly categorised ensures your financial records and tax calculations stay completely accurate. 💳
For limited companies
If you run a limited company, you can pay into a workplace pension directly from your business account. To record this correctly in the app, simply assign the transaction to the Pension payments category. 🏢
For sole traders
If you are a sole trader, you cannot claim personal pension contributions as a business expense. These contributions are handled through your personal tax calculation rather than your business accounts. 👤
If you accidentally pay into your personal pension using your business account, you will need to treat it as a personal withdrawal rather than a business expense. To keep your books accurate, classify the transaction under the Personal draw or personal expenses category.