Yet another SOA Question

Tom46

I have been reading other peoples SOA’s here and some of the comment that have been made are that you can put certain things in SOA if you need them for business, like phone or internet.
As I ma self employed I was going to deduct everything business related from my income and for the expenditure I just but down household/family expenses. Is That the correct way of doing it?

Bethankim

Hi Tom,

im not totally sure, but if it were me i would deduct business expenses first from your 'income' and what you have left as net pay and then do your SOA

although im happy to be stand corrected, it is often quiet on a sunday night but hopefully one the soa whizzes will be about.

fiveyearplan

I agree with Beth, deduct your business expenses before your income.

debtinfo

me too......

Bethankim

Thanks guys i dont often stray into SOA's cause i get confused..but didnt want to leave him wondering..

Tom46

Thanks, that seems like a logical way of doing it. I was also thinking, would OR be interested in my business expenses, and if so how detailed OR would look into that. Would OR say that you are using too much fuel or your phone bill is too high or you are using too much on advertising. Or can I spend whatever it takes to get business done.

nervousmother

With regards to the internet, its said its not allowed unless you need it for work/study. so if you were employed and needed to use the internet at home it would be allowed.
My OH deducted all his business expenses then just put the remainder down as income on his SOA. He did not list all his business expenses I dont think there is enough room :-)

fiveyearplan

I wouldn't think they'd look into the way you run your business.

debtinfo

to a point, although it would have to be proveable

nervousmother

The OR/Trustee never once looked at his list of business expenses although I think some may ask to see them, but they cant really argue with the majority of expenses.

Tom46

Thanks, I really like this forum, lot of advice and information here and so fast. If the judge asks If I had any advice, I will say I talked to the people in this forum.