I have made a payment out of the bank for Income tax for two partners. What do I tag the payment as?
Hi @ESL62
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