Option to adding withdrawal interest to payment

On a product there is a setting”Add interest after tax is fixed”, when “apply interest” is ticked

On withdrawals where ‘Tax on withdrawal‘ applies:

If ‘Add interest after tax is fixed’ is not ticked the payment amount to the client (and the IT88 and PAYE) will not add further interest after tax is fixed. So interest is only calculated up to when you click on the “Confirm Payment Amount” on the instruction that was in Waiting for Tax status.

A. If ‘Add interest after tax is fixed’ is ticked, interest is added to the payment amount to the client up to the generation of the payment batch.

B. With Instruction where ‘tax on withdrawal’ does not apply, interest will be calculate up to the generation of the payment batch and will be added to the payment amount to the client, irrespective if ‘Add interest after tax is fixed’ is ticked or not.

In the case of a partial withdrawal A and B will still apply, the interest will however not automatically be added to the payment amount in the case where the withdrawal has been specified in amount. Also see Pay full amount on recurring withdrawals and once off withdrawals, Change payment amount on a withdrawal and Payout interest on partial amount withdrawals

Last Updated on 3 years ago by Antoinette Van Meyeren