The Tax Rates panel is used to adjust the amount of tax that is being paid on your organisation’s commission and Tutors’ pay rates. It is also used to specify which tax setting is the default for any Jobs that you create. The panel can be found via System > Settings > Accounting Settings > Tax Rates.
The Tax Rates panel.
You can change your Tax Rates by selecting a premade Tax Setup from the dropdown menu - by default, TutorCruncher includes the options of 20% (The national VAT rate for the UK) or 0%, but you can create other setups via the Tax Setup menu.
What is my Default Job Tax Setting?
This simply refers to which tax setting the system adds by default to any Jobs you create (these can be adjusted in the Job’s accounting panel).
What is the difference between NET and GROSS values when calculating tax?
The simplest way to understand this
Calculate tax on amount (enter GROSS values) - essentially meaning that your invoices/charges are tax inclusive - if you were to invoice a Client for £100 with 20% tax calculated on the gross amount, the 20% tax would be included within the £100, meaning after tax your commission would be £80.
Add tax to amount (enter NET values) - essentially meaning that your invoices/charges are tax exclusive - if you were to invoice a Client for £100, with 20% tax added to the amount, the tax would be passed onto the Client, meaning their invoice would be £120.