Explain pension payments
This article explains how to explain payments to a pension provider in FreeAgent.
Once you’ve paid the money to the pension scheme, explain the bank transaction in FreeAgent by selecting the relevant 'Type' and 'Category' as detailed below.
Please note:
- You need to have level 6 access or above to your FreeAgent account to explain bank transactions.
- The way you should explain the pension payment depends on whether you’re running payroll through FreeAgent or outside of FreeAgent.
- If you have made a one-off payment on behalf of a director and have not put the pension through payroll, follow the guidance for recording a one-off payment below.
Running payroll through FreeAgent
If you’re running payroll in FreeAgent, find out how to enter pension contributions in an employee's payroll profile in FreeAgent.
Once you’ve paid the money to the pension scheme, explain the bank transaction in FreeAgent as 'Other Money Out' as the 'Type' and 'Pension Creditor' as the 'Category'.
Select 'Explain transaction' to complete the process.
Running payroll outside of FreeAgent or making a one-off payment
Once you’ve paid the money to the pension scheme, choose 'Payment' as the transaction 'Type' and either 'Pension (Annuity)' or 'Pension (Personal/Stakeholder)' as the 'Category'.
If you're unsure which category to select, please ask your pension provider.
Pension"
Select 'Explain transaction' to complete the process.