Glossary

Glossary

financial terms explained

Net income

Income can be calculated two ways, net or gross. Gross is the full value of your income before any outgoings are accounted for. Net income is what you have left when tax, national insurance and so on have been chiselled off your hard earned spends.

You will usually find that when you receive your wages, they are actually your net income since your employers (if you have any) will have extracted the taxes etc. already.