Net Income

The difference between total revenue and total expenses is 'Net Income'. This caption and amount is usually found at the bottom of a company's Profit and Loss statement and is the same as 'Net Profit'.

It also applies to employees, who have deductions from gross pay (see 'Gross Income') in the form of tax, National Insurance and other sundry items.The deductions and associated 'net income' will invariably be shown on the employee's payslip.

In most cases, for tax reporting purposes, the net income for each income type will be not be the principal entry on the tax return, which requires the gross income and then the individual items, by way of deductions and/or expenses, reported separately resulting in the 'net' calculation.