CP0557 – Income tax processing within the Funds Transfer System

Formal title: Income tax processing within the Funds Transfer System

Summary

Prior to the NETA Go-live, Elexon instructed the FAA to remove income tax processing from the Funds Transfer System (FTS2000) as it was not applicable under NETA. Prior to NETA, income tax applied to Reconciliation interest and interest on payments due if billing was late. The FAA have implemented a manual process that results in: • The tax rate being set to zero; and • References to income tax being removed from the Advice Notes. This approach is consistent with Inland Revenue instructions. This process was intended to be a workaround only and therefore this CP proposes a FTS2000 system change to enable the removal of income tax information from printed matter as well as facilitating any future income tax changes.
Implementing this change will ensure that there is no reference to income tax on printed matter which is essential to meet the Inland Revenue requirements in this area