NEST pension deductions from Sole Trader invoices

Hi there, ghawkins1.

Thank you for visiting the QuickBooks Community. I'll be sharing details on how categorising entries works in QuickBooks Self Employed. Then, to ensure you're able to record the pension deduction or any entries in the system accurately.

When you categorise entries, QuickBooks puts your transactions on the correct line of your Schedule C. This also organises your income and expenses so you know what areas of your self-employed business have the biggest impact. There are also SA103F deduction categories you can claim as allowable expenses for Self-Employment. That said, you can manually record the pension deduction as personal. Transactions and deposits, such as regular paychecks from an employer (as long as it has taxes taken out), should be marked as Personal. To ensure your records are in shipshape, I suggest consulting an accountant to help you properly organize or determining the right category to use with your entries.

On the other hand, when you receive invoice payments, you can record them on the Transactions page and categorised them Business as income. Then, manually mark the invoice as paid in the system.

Here's how:

1. From QBSE, go to the Invoices menu at the left pane.
2. Locate the specific invoice, then tick the drop-down option under the Action column.
3. Pick Mark as paid.

Please refer to this article to view different information on how QBSE tracks your income throughout the year to be more ready when your taxes are due: QuickBooks Self-Employed Overview.

I want to make sure you have all the information you need, so please let me know if you have any other questions about categorising or recording transactions in QBSE. I'm always here to assist further. Have a good one.