Trade income is the money received from the main business e.g. a taxi driver receiving fares, or a plumber having an invoice paid that covers a new sink being put in.
Any other income should not be included as ‘trade income’ (sometimes called revenue, turnover, or sales), but as ‘other income’ instead.
Other income includes:
• Bank interest
• Rent from letting part of the business premises out
• Gains/profit from the sale of a business asset
• Commission paid because of customer referrals.
WHY IS IT IMPORTANT TO SEPARATE THEM?
Other income being included within the trade income would give the impression that the trade is doing better than it is.
PERMANENTLY CLOSED (Tyler-Oliphant Accountancy) 