Filing & Returns
Understanding the Profit & Loss statement
Turnover
Turnover represents your company's total sales or revenue generated during the accounting period, strictly excluding VAT.
Cost of Sales
These are the direct costs attributable to producing the goods or services you sold. This includes raw materials and direct labour. For service businesses, this is often zero.
Administrative Expenses
Also known as overheads, these are the day-to-day costs of running your business. This includes rent, software subscriptions, travel, accountancy fees, and general office supplies.
Other P&L Fields
You must also declare 'Other Operating Income' (such as government grants), any 'Interest Receivable' (like bank interest), and 'Directors Remuneration' (salaries paid to directors, excluding dividends).