A fundamental principle of UK income tax and corporation tax whereby expenditures that have a dual purpose are not deductible in computing profits subject to tax unless they can be dissected to identify wholly business-related expenses.
Net denotes an amount remaining after specific deductions have been made. Net profit before taxation, for instance, is the profit made by an organization after the deduction of all business expenditure but before the deduction of the taxation charge.
Variable costs are expenses that change in proportion to the level of activity or volume of production a business undertakes.
