Income is the amount of money which comes to a person or organisation. All income comes under tax regulations.
Part ofApplications of MathsFinancial skills
Gross income is your total earnings before any deductions are made.
More information on basic pay, overtime and commission can be found in the National 4 Lifeskills Maths section on Income.
Once all Income Tax, National Insurance and Pension Contributions have been made, these are added together to give the ‘Total Deductions’.
Net Income = Gross Income – Total Deductions
The Net Pay is the amount an employee actually ‘takes home’. Most income payments are now made into directly into bank accounts.
