Deductions and Taxes
In Tide, you are able to capture a variety of deductions and taxes - either from your bordereau in the questionnaire or, at the Section level, within the Contract itself.
Within the Contract, you are able to specify deductions within the Deductions sub-tab within a Section. In a Risk, Premium or Risk & Premium questionnaire, you can capture deductions and taxes in the Deductions & taxes step.
Within the Questionnaire, you have the option to supply aggregate (or total) deduction and tax financial information before being presented with the option to create individual deductions or taxes.
Within the Contract, you are required to supply a specific amount or percentage for each deduction as you do not have the option to supply a bordereau column here, unlike in the questionnaire.
From a data output perspective, deductions and taxes operate in pairs of core fields: amount and percentage. If you supply one, the other will be calculated by Tide and thus, both amount and percentage fields will always be populated after approving a bordereau. The exception to this is Administration Fee, Property Fee, Valuation Fee and Medical fee – these are all restricted to only being captured as amounts.
With taxes and generic deductions (i.e. not commission, brokerage or producing brokerage), you have the ability to specify whether these are to be utilised in financial calculations during processing and, for deductions specifically, you can also specify which premium level they are to be ‘applied against’ and ‘deducted from’.
The premium level a deduction is applied against is the premium against which the percentage applies. E.g., a 5% deduction could either be applied against Gross Premium or Net Premium to Broker.
The premium level a deduction is deducted from is the premium from which the deduction amount will be subtracted. E.g. a £50 deduction is to be deducted from Gross Premium or Net Premium to Broker.
How Taxes are Utilised in Financial Calculations
Gross Premium
The Gross Premium is the total premium before any deductions. As this field is mandatory it should be mapped to the total Gross Premium value.
Gross Premium Including Tax
Gross Premium plus Tax is the sum of Gross Premium and the taxes of the risk. If Tide is calculating this value, then this will be completed by summing together the values of Gross Premium and Tax.
Net Premium to Broker
The Net Premium to Broker is the Gross Premium minus any Coverholder Commission, Producing Brokerage (if applicable) and Gross Premium deductions. Net Premium to Broker is to be inclusive of Tax, if Tax is being administered in London (or, from Tide’s perspective, being utilised as part of financial calculations). If mapped in the questionnaire, Tide will bring through the value mapped to this field.
If Tide is calculating this value, then this will be completed by deducting the following fields from Gross Premium: Coverholder Commission, Producing Brokerage (if applicable), Gross Premium deductions (if applicable) plus Tax (if Tax is being administered in London (or, from Tide’s perspective, being utilised as part of financial calculations).
Final Net Premium
Final Net Premium is the Net Premium to Broker minus Brokerage, Net Premium Deductions and Tax, if Tax is being administered in London (or, from Tide's perspective, being utilised as part of financial calculations). If mapped in the questionnaire, Tide will bring through the value mapped to this field.
Calculated fields can be used in the questionnaire to achieve the required financial values in a field.