Turnover is your total sales income before any costs. This guide explains what counts, why it matters for tax thresholds, and how it differs from profit.
Published July 2026 · Updated July 2026
Turnover is everything you sold over a period, added up, before a single cost is taken off. It is also called revenue or the top line, because it sits at the top of the profit and loss.
Several tax rules key off turnover, most notably the £90,000 VAT registration threshold and the income thresholds for Making Tax Digital. Knowing your rolling turnover helps you plan for when new obligations kick in.
Turnover is not profit. A business can have large turnover and still make a loss if its costs are higher. Profit only appears once you subtract costs from turnover.
No. Turnover is your sales excluding VAT, since VAT is collected on HMRC's behalf, not income you keep.
In everyday use, yes, it is your sales income. 'Income' can sometimes include other amounts like interest, so context matters.
It is a quick gauge of business size, though they will also look at profit and cash flow.
Source: GOV.UK ↗. This glossary is written for small business owners, so definitions are simplified. Tax rates and thresholds reflect 2026/27 UK rules and change over time. Berified does not provide accounting, tax or legal advice; always check the source or a qualified adviser.