I have made a payment out of the bank for Income tax for two partners. What do I tag the payment as?
Income tax isn’t an allowable business expense, so it would be tagged as drawings to the relevant partner’s drawings account.
In this case, if it’s one payment, I would delete it and re-enter it as two separate ones - one for each partner. Then tag them as a transfer between bank accounts, and select the related partner’s drawings account.
I hope that helps.
Yes there are two payments