Self administered pension fund accounting! Help!

How to do Self administered pension fund accounts

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Dear AWeb friends,

Long time. Hope everyone is well?

Please help me! I’ve got a new client I’m doing bookkeeping for and they’ve got a pension fund I only discovered when a VAT late filing letter was brought to me.

This fund is held away from the business accounts and owned and run by the Directors and family with some selected trustees.

The pension fund is VAT registered and not received any income yet from 2 properties it purchased last year for rental income (both opted to Tax). Only 1 invoice from pension administration company. The company gives pension funds a lump sum payment once a year at y/e.

Can I set this up in Sage (like a new company) and then record Sales purchases, vat returns etc?

Is there software specifically for pension funds?

Where can I also get good information  aside HMRC guidance on sled administered pension funds?

Thanking you guys in advance for every single input into my present dilemma.

 

Donna x

Replies (8)

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paddle steamer
By DJKL
28th Nov 2017 10:09

Just to be clear it is a SSAS and not a group of SIPPS?

If a SSAS I think it reports using the SORP but long time since I did any so you may want to check this.

(I have a soft spot for pension schemes, as an apprentice the first audit I ever worked on was a group of six DB schemes for a quoted plc.

I still vividly remember the moment of dread, sweat beading my forehead, as I stared at a cashbook and realised that university had not discussed cashbooks, bank transactions always started with a nice neat receipts and payments summary, and then tentatively asking the Audit Senior I was with what it was and what was I supposed to do with it)

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Replying to DJKL:
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By Donna-
28th Nov 2017 13:50

Lol, I had a similar experience with day books and realised I hadn’t bothered with books of first entry by the time we left Uni.

Yes, definitely a SAAS scheme!

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Replying to Donna-:
paddle steamer
By DJKL
28th Nov 2017 14:40

Well in that case I would create the books as if it were any other business, however given property you want to ensure whatever you use can deal with say some properties with vat (options) and some exempt, as you do not know what the future holds with further properties.

If the system is not to be used to issue invoices for rent and services you may get away with a basic cashbook type approach, if debtors and creditors are on point, and vat is to be recognised on invoice date, then a ledger system will likely be more appropriate.

As long as you split transactions in an appropriate manner either ought to be capable of being the basis for preparing annual accounts under the SORP.

The last set I did, a long time ago, I spent a fair bit of time allocating value to members, it was a defined contribution scheme, what type of scheme do they have?

You may want to have a read re the 2015 SORP, plus model accounts by say PWC etc

https://www.iasplus.com/en-gb/publications/uk/other/practical-guide-pens...

https://www.pwc.co.uk/assets/pdf/illustrative-annual-report-and-financia...

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Replying to DJKL:
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By Donna-
28th Nov 2017 21:56

DJKL you are awesome!

That’s brilliant help, I’ll read the SORPs etc and will review these and setup on a ledger system..

The plan is a defined contribution one.

Thanking you so much for your input.

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By Tim Vane
28th Nov 2017 10:13

My suggestion would be to contact the accountant who acts for your client. Presumably their accountant helped them set up the fund and can advise you on the bookkeeping requirements (if any).

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Replying to Tim Vane:
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By Donna-
28th Nov 2017 21:58

Checked and they set it up with some other investment firm not their accountants and they charge £200 per hour to advise!?.. What madness is that!?..

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Replying to Donna-:
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By WhichTyler
28th Nov 2017 22:26

Welcome to the murky world of pension administration, and I would suggest you make the administrators earn every penny of their fee. The disclosure and governance requirements for a tiny DB scheme I run are huge, and the administrators do as little as they can to support the trustees. Swamping people with paper does not add value...

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Replying to WhichTyler:
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By Donna-
29th Nov 2017 14:22

Hmm thinking of it I havent exchanged a single email with the administrators just Cc’d in an odd one or two msgs last year by the Directors.

Ok I’m on it, I shall be calling them and getting a contact to out to task or quiz over things in the coming weeks.. argh another laborious chore then! x

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