FEES

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FEES.PNG
Name Additional Fees and Taxes
Shortcut FEES
Area Security & Maintenance

See the NOVUS Walkthrough Guide for further information.


TAXES & FEES

The FEES program can be used to change the way in which the taxes and fees are processed and to add further taxes and fees.

The system supports combinations of fees and taxes to be applied in the course of transaction processing. Certain taxes such as Client Tax (IPT (Insurance Premium Tax)) are pre-configured in the system.

For UK registered companies IPT is listed as a "Special Handling Tax", as it is the domestic tax and is reported differently in some reports and documents, such as LPANS (London Premium Advice Note). The Special Handling indicator must be applied to access this functionality.


To distinguish between a Tax and a Fee:

A Tax is a percentage charge on one or more instalments of a transaction but can be advanced to be collected at the start.

A Fee is an amount of money paid at the start". There are occasions when Taxes are actually titled as a 'Fee' but it is a requirement that the correct T or F is used to denote their behaviour irrespective of their naming convention.

To set a default value for a Tax or Fee enter it into the default value column, and to make the completion of the values mandatory, set the field Req'd to 'Y'.

Please refer to the description on the General IBA (Individual Brokerage Account) Transaction Entry program, TRANPT, for a further discussion on Fees and Taxes.


To add a new Tax or Fee

To add a new record, click the Add button. The Add New Code tab will open with a new empty row at the bottom of the grid highlighted in light blue. The user will have the ability to add the new tax or fee details in this new row and then tabbing past the end of the row will enable the Save button, which should be clicked to save the record.

To view the history of a Tax or Fee

In order to view the history of a Tax or Fee code, either double click on the row for the code you wish to view, and the Edit Code tab will open or single click to highlight the row for the code you wish to view, and then click the Edit button to open the Edit Code tab.

FEES edit tab.PNG
In the Tax/Fee cap columns, the ‘cap’ is referring to specific taxes which have a cap in some way, and the options in the basis column are P (Policy) or T (Transaction). If a tax is chargeable at a default rate of 10%, it may have a cap of GBP 10,000 per policy (or per transaction). For example, if a policy premium was £200,000, and the tax is applied at 10% = GBP 20,000, the cap would then apply so the tax would be charged as GBP 10,000. So in this instance, you might see a Basis of T, a Value of 10,000 and a currency of GBP.

To edit an existing Tax or Fee

To edit an existing record, either double click on the row for the code you wish to edit, and the Edit Code tab will open or single click to highlight the row for the code you wish to edit, and then click the Edit button to open the Edit Code tab. This contains all previous records for the selected Tax or Fee.

Enter a to date for the existing record and then click into the empty row highlighted in light blue. A new row will be created as a copy of the existing record with the From date set to the day after the To date. Any column can then be edited with the exception of the tax or fee indicator and the Cap Currency. The to date column for the newly added record can either have a set date in the future or be left blank to be open-ended i.e., any future date. Tabbing past the end of the row will enable the Save button, which should be clicked to save the new record.

FEES edit tab.PNG

Field Descriptions

The main grid in this program lists the following information:


Column name Description
Codes Tax or Fee Code. This must be an alphanumeric character.
From Date From Date
To Date To Date
Tax or Fee Set to 'T' for Tax or 'F' for Fee. Taxes apply on each instalment and are expressed in percentage terms of the gross amount whereas Fees are expressed in monetary amounts and only apply to the first instalment.
Special Handling Code For taxes or fees that require special handling for LPANS select the drop-down list to add the indicator in this column:
 'I' - UK National Tax - IPT
 'V' - Variable commission Fees
 'A' - Audit fees
 'C' - Italian Accessoi
Description Free format description of the Tax or Fee code.
Component Amount component (proportional treaties)

The next three columns are in two sets - one for debits and one for credits.

Column name Description
Account Choose the appropriate code from the drop-down list in this column. '*' (Client Account), '.' (U/W Account), '-' (Silent Agent), or a revenue account.
Required Set to 'Y' if the account must be specified. Leave blank if this is optional. Set to 'N' if the account is not allowed to be specified.

For example, IPT would have the debit account set to '*' meaning all clients and the required flag set to 'N' to prevent this account from being changed.

Suffix Debit/credit suffix. If the debit account has been set to all clients (*) then this suffix would also be '*'.

If a specific debit account has been entered (e.g. XBR for refunds) then this should be set to the required suffix for the XBR account. This would normally be null to be analysed correctly into the additional fees NL (Nominal Ledger) revenue account. Additional suffixes are available in Helix: ^ (Co insurer) + (ceded) and : (retained)

Default Rate/Amount Default rate for taxes (percentage), or default amount for fees
Basis Line ('L'), Brokerage ('B') or Sum(s) Insured ('S').
Advance Select 'Y' to advance Taxes or Fees on instalment transactions into the first instalment
Cap Basis Select the basis on which the cap is to be applied - either Policy or Transaction
Cap Value Enter the cap value (monetary amount)
Cap Curr Users can add a cap in base currency to restrict the tax or fee to the cap value on the cap basis of either Policy or Transaction

Versions

v6.4.0 – Updated to the latest version
v6.3.0 – Updated to the latest version
v6.0.0 – Updated to the latest version
v4.2.0 – Updated to latest version
V23L - Fees can be entered which have a revenue account
V16M - SI based taxes  added (LORB = 'S')
V15M- Force all accounts to be configured as revenue accounts
v14T - First version of this form to use the new style. No other updates except the restyle.