This is my first post on here so please forgive if this has been explained elsewhere. I searched without success, so here it goes.
I am a freelance designer operating under my ltd company. Every month I pay myself a amount that is partly a salary (to the extent of my tax free allowance) and partly a dividend withdrawal.
I have to tag this expense on the banking screen but don’t see a way of doing that with that one amount. Is it possible or perhaps I should remove that expense and replace it manually with two corresponding ones?
If you need to tag a payment to 2 different accounts (such as your case), you are correct - simply delete the one payment, make two new ones and tag them individually.
Or if you still want the quickfile view of your bank account to exactly reflect your bank statement you could tag the single transaction as a transfer to director’s loan and then tag the split salary/dividend payments from the DL account to balance it out.
This will add a £1,400 money out transaction on your bank and split it across Directors Salaries and Dividends. You would then need to delete the original entry on the bank (the untagged one) so not to duplicate.
Also please note that debits and credits are reversed on bank accounts. What you would typically call a bank debit is actually a credit on your accounts.
