How tax works in Brixx

Summary

In Brixx, you can choose from three types of tax:

  • VAT

  • Sales Tax

  • GST

These all follow the same structure. In the examples below, VAT is used, but the same rules apply to Sales Tax and GST.

 

 

Tax in Settings

There are two default tax rates which are set in Settings. By default these are 20% and 5% but you can edit these as you wish.

Tax in Components

Certain components in Brixx can have tax calculations applied. These include:

  • Income

  • Operational Costs

  • Cost of Sales

  • Inventory

  • Assets

Each eligible component includes a tax toggle at the bottom of its form. Switch this on to enable tax calculations for that item.

You can also choose to automatically apply tax to new components in the Settings menu. This won’t affect components that already exist in the plan.

If you prefer not to apply tax to a specific component, simply switch the tax toggle off.

The tax option in components allows you to select which of the two tax rates set in Settings to apply to the component. You can also select 'Custom' if you need to enter a tax rate different to either tax rate in Settings.

'On top of' vs 'Included in'

Tax can be applied in two ways:

  • On top of: The tax is added to the values you enter in a component.

    • For example, if you enter £100 in an income component, and tax is “on top of,” reports will show £100 income and £20 tax.

  • Included in: The tax is already part of the entered value.

    • Using the same example, with tax “included in,” the reports would show £83.33 income and £16.67 tax (i.e., £100 total, tax included).

Payments to/from the tax authority

Brixx handles payments to and from the tax authority automatically.

These payments are calculated and scheduled based on:

  • Your plan’s financial year end

  • The frequency you choose in the tax settings

No manual tracking or entries are needed — Brixx tracks and times these payments for you.

How tax is calculated in Brixx

In the Cash Flow Report, tax is broken down into four lines, plus a total Taxation line (which may also include corporation tax):

If a plan is connected to Xero, it will show tax included in lines like Cash Received, rather than split out.

  • Tax Paid on Goods and Services

    • Tax paid when purchasing assets or covering costs (e.g., bills).

  • Tax Received from Sales

    • Tax collected from your customers.

  • Tax Paid to Government

    • The amount remitted to the government. This equals tax received minus tax paid during the same period.

  • Tax Received from Government

    • If you paid more tax on costs than you received on sales, you’ll see a refund amount here.

 

When tax appears in reports

The Cash Flow report shows when the tax is actually paid or received — not necessarily when it's invoiced.

However, the Tax Paid to Government and Tax Received from Government lines work differently: they calculate based on invoicing dates, not cash movements.

The timing of these government-related tax lines can be delayed by a set number of months, configured in Settings.

This distinction means:

  • Tax Paid on Goods and Services appears based on cash paid

  • Tax Received from Government is based on when the expense is recorded in the Profit & Loss report, even if the cash leaves later

You can always view your current tax liability on the Balance Sheet report.

 

Example
There is one Income component set up like so :

  • £1000 pounds per month income.
  • 1 Month delay from Invoicing to when the cash flows in.
  • 20% VAT(That is £200 per month)

The Cash Flow Report shows:

Notice how the January column is empty on all of the rows, even the VAT ones, and in February and March on the VAT Received from Sales row you see £200 on each month.

Paying tax at the end of the quarter (end of March), you need to pay £600 - 3 months worth, not just the £400 you see in the Cash Flow report.

This is visible in the VAT Paid to Government row.


Even though cash didn’t come in until February, the taxable invoice went out in January, which means £200 worth of VAT for January.


You can view this in the Balance report sheet.

March is shown empty, because at the end of the month you will pay all of the accrued VAT through that Quarter.