recording class 2 nics

[kimsabedo]

hi im very new to self employment record keeping. how do you record class 2 nics payments on a ledger. are they, as i think, a personal expense. would they be included in the drawings part of a ledger. how are they recorded on a balance sheet.

[Anna Chandley]

You are correct that Class 2 NI payments are personal and would be recorded as drawings.

Anna

[kimsabedo]

Thanks for you reply Anna. Would these be with drawings on a balance sheet too.

[Anna Chandley]

The drawings account is a balance sheet item, The accounting entry would be to debit drawings and credit bank. These entries do not appear anywhere on the profit and loss account.

[kimsabedo]

yep - i got you - many thanks for your help.