PTX - Dividends Question

Lolo Bean

Hi guys,

I wonder if someone can give me abit of guidance with regards to dividends received?

£400 dividends received.

What is the Gross amount of these dividends???

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Now I know that dividends are received Net and therefore we need to Gross them up.

So I calculated 400/100*90 = £444.44 as the Gross amount.

But the correct answer is £440. 10% of the £400 would give me £40 then add that to the £400 to get £440 but I though that you had to do the 100/90 calculation?

Please help, very confused

BeccaLouJ9

Helloo,

Where is the Q from?

I'm with you, £444.44.

B x

Lolo Bean

The question was in my recent Personal Tax exam (which I failed). When I received my feedback sheet this question was wrong. However I had written down my questions in the exam as I went, so if I did fail I could go back and reference the question.

So I had given an answer of £444.44 (which was wrong).

The available options from the dropdown menu were: 270, 350, 356.56, 360, 440, 444.44, 450 & 530

BeccaLouJ9

..and you're sure the Q was £400 not £396?

That's odd. I def would've put £444.44. Maybe someone else can tell us why we're wrong!

B x

Lolo Bean

It was definitely £400 dividends received.

I know I'd love to know where I'm going wrong, have my resit on Tuesday so trying to get my head around all the areas that I did not meet. :001_smile:

BeccaLouJ9

Well, good luck, I took mine 2 weeks ago so I've another 4 weeks until results time!

Hope you get an answer re above!

B x

Lolo Bean

What theroy question were you given?
Mines was on incorrect returns.
Errors due to lack of reasonable care, deliberate and concealed etc....

Good luck for you results! x

BeccaLouJ9

Mine was about why some guys tax liability was so high, as he didn't have that high income. I told him that it was based on the previous years liability. blah blah

B x