Fiducia TogetherGross and net
Before and after deductions. Two of the most overloaded words in business.
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.
What it means
Gross means before deductions; net means after. What is deducted depends entirely on context.
Why it matters
Confusing them produces errors of exactly the size of the deduction, which is usually large. Gross pay and net pay, gross profit and net profit, gross and net of VAT — same words, different subtractions.
What it looks like in practice
Always ask "net of what?". Net profit after tax and net profit before tax differ by the tax. A price "net of VAT" is the price before VAT is added.
What to watch out for
Quoting a price without saying whether it includes VAT. It is the commonest cause of disputed invoices in small business, and it is solved by two words on the quote.
Where to get proper advice
Your accountant, and your own quote template — put "plus VAT" or "including VAT" on it and the problem disappears.
Where to read more
Last reviewed 2026-08-28 by Fiducia Together · Next review due 2027-08-28
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.