Setting up ClearBooks for (taxed) pension income as well as sole-trader income

Question asked by David Frith 1 month ago

I am a semi-retired graphic designer and I’m using the free version of CB. I’ve entered all my sole trader income and expenses without any problems. I’m using CB in preparation for MTD but it won’t be mandatory for me until 2026/27. When this period occurs, (I assume) I will also need to account for my company pension income which is taxed at source (PAYE basic rate) and my state pension (which I believe will be paid gross of any income tax). How do I set this up in CB?

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2 Replies

That's very helpful. Many thanks

1 month ago

Hi David,

in this case, you will use your Clear Books Sole Trader account to submit the income and expense for your Graphic Design business through the Quarterly updates.

For the pension income, you must open a MTD Tax Return account by hovering over your business name at the top left > Add MTD Tax return. Any PAYE income (employment or pension) will be pre-populated in the MTD Tax Return as it is information already held by HMRC, so you won't need to do anything at the year end to submit it.

Tommy

1 month ago

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