Brixx Update – VAT, Employer National Insurance & Pensions

Brixx Update - VAT, Employer National Insurance & Pensions blog post header image of a computer graphic for Brixx Software

A new update went live today with some new automated planning tools to make your life a lot easier. We have new options appearing inside the finance settings of your plan and inside many planning components. These cover VAT, National Insurance and Pension contribution.

First up, lets talk VAT.


VAT calculator

If you have ever had frustrations trying to calculate VAT payments in a spreadsheet, we are here to help. We had an existing VAT option that could be turned on but we have really expanded the options to give you far more control.

There are now two VAT rates with default values of 20% and 5%. In case you don’t know how VAT works in Brixx, every individual income source or cost can have VAT switched on or off. Now, with two rates you can pick which one is used for each income or cost, or enter a custom rate.

This also allows you to quickly check the consequences of a future update to VAT. You can change the global rate and it will automatically update your numbers for you to quickly see the effect on your cash flow.

We have also added a new option on plan creation (and inside a plan’s settings) to have VAT switched on inside every new component, so you don’t have to manually turn VAT on for each component.

Check out the chart below, this shows how a product with VAT applied will appear on your Brixx plan cash flow chart.

The next thing we have added is the option for the VAT calculation to be ‘on top of’ or ‘included’ in your income and cost forecasts. Previously we only had ‘on top of’. Again, this can be changed inside each financial component of your business plan, allowing you to set this on a case by case basis for better accuracy on your VAT forecasts.

Let me give you an example of how this works.

Calculating VAT on top of an income forecast

Let’s say I have a product forecasting £1200 sales a month.

If I were to turn on VAT (at 20%) then it would add an additional £240 income you take every month.

Calculation: 1200×0.2=240

It would automatically then calculate the HMRC repayment of £720 every 3 months.

Calculating VAT included in an income forecast

Using the same example figure of £1200, this time we’ll switch VAT to be included in income. This means the £1200 forecast already has the VAT amount factored in. This time the VAT amount per month works out as £200 and a repayment of £600.

Calculation: 1200/1.2=1000 | 1200-1000=200

These tools really allow you to enter your forecast how you think about your numbers and pricing and let the automated VAT calculator handle the rest for you.

VAT in your reports

You’ll see VAT broken down on your cash flow forecast report and like everything in Brixx, you can drill into your monthly VAT total to see what it’s made up from. You’ll see how big your VAT bill is going to be to help plan your cash flow in advance.

National Insurance calculator

It’s been requested, and we have wanted it for a while too so here it is. The employee component can now be set to automatically calculate the National Insurance amount that employers are expected to pay based on their employees’ salaries. Like the VAT options, this can be configured in the financial settings area of your plan and turned on inside employee components. The default uses the current NI rate and threshold set by the UK government.

We have even gone one step further with a ‘change in NI’ forecast option. This allows you to set up a situation where there is a future change in National Insurance levels, affecting how much you have to pay as a business. This is as simple as adding a new National Insurance rate in your settings area and choosing a date the change will occur. You’ll be able to then see the resulting effect in your charts and reports.

You can turn on the global NI rate inside employee components themselves by ticking the apply national insurance tick box. Here you will also find that we have added a further control for calculating an employer pension contribution. Simply set up the percentage contribution and the calculator will do the rest of the work for you.

More Brixx Software Updates

These two features are part of our continuing effort to provide an incredibly powerful financial modelling tool. We really want to take the hard work out of planning businesses.

We also fixed a number of bugs in this update in preparation for more exciting additions we have in the development pipeline later this year. We’ll have more details on this in a future blog post but let’s just say we a grand vision for the software this year that will take business planning to an entirely new level! Stay tuned.

Automatic NI, VAT and pension calculations – a big step forward for Brixx. If you haven’t already, sign up for a free trial and see how forecasting in Brixx could help you plan for your business.

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