Gross profit is the difference between sales income and the cost of the goods sold.
It does not include the costs of overheads such as distribution, or payroll, tax and interest payments. Sometimes, gross profit is expressed as a percentage.
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Self Assessment and Making Tax Digital: What MTD for Income Tax means for sole traders
Get the lowdown on how Making Tax Digital will change the way sole traders submit tax returns, and what that means for Self Assessment.
