How to Record Non-Business PaymentsIf you make non-business payments from a business account you should record this as a payment to the business owner. To do this, click menu File > New > Money Paid Out:
Enter the details into the following fields:
- Paid To: Enter the name of the beneficiary (this is usually the business owner).
- Date: The date of the payment.
- Amount Paid: The amount of money you paid.
- Paid From Account: The account used to make the payment,
e.g. 'Cheque Account' or 'Mastercard'.
- ID: A unique number for this payment.
- Journal Memo: A description of this transaction for your records.
- Type: For a non-business payment this should be 'General Payment'.
- More Options > VAT Treatment (only shown if registered for VAT): This should be set
to 'Out of Scope' because payments to owners are not affected by VAT.
- Allocate to Account: This is the account used to track payments to business owners.
If the payment benefits a company director, this should be 'Directors Loan Account'. For a partner in a partnership or
self-employed individual this should be 'Owner's Drawings and Personal Use'.
- VAT Column (only shown if registered for VAT): This should be set to '0%' because payments to owners are not affected by VAT.
- Amount Column: The amount of the payment.