- Project plans
- Project activities
- Legislation and standards
- Industry context
Last edited 23 Oct 2018
Turnover in the construction industry
In general terms, turnover is the total amount that a business bills to its clients, less any discounts, VAT, and so on. It includes amounts such as the shipping that is required, and any expenses that are billed to the client.
It is important to remember that turnover is determined when the goods and services are actually provided, rather than when they have been invoiced or when the cash has been received. As income from investments such as interest and dividend income is not derived from the provision of goods and services, these are not included in turnover.
Turnover determines when a business has to register to pay Value Added Tax (VAT). VAT is a tax added to the cost of certain goods and services. It is only accountable where the party raising an invoice is VAT registered. It is necessary to register if VAT-able turnover exceeds a minimum threshold in any 12-month period.
 Related articles on Designing Buildings Wiki
Featured articles and news
It's vital the industry responds to proposals for reform of the safety regulatory system.
RSHP's Merano wins RIBA accolade.
How to differentiate between partial possession and early use.
Ofwat proposes £12 billion additional investment and £50 bill reductions.
Avoiding 'winner's curse' and other useful info.
Developing test methods for video flame/smoke detectors
Waiting for a new deal ...but will funding materialise?
Our servers have reached another milestone. Why not write an article and be seen by our 6.5 million users.
RSHP celebrates competition win in Paris.
All about approved inspectors.
Whilst apparently confusing, German conservation is actually not that different.
The rise and fall of council housing. Book review.