PTX - Dividends Question

Lolo BeanLolo Bean New MemberRegistered Posts: 13
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???
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

Comments

  • BeccaLouJ9BeccaLouJ9 Experienced Mentor DevonFMAAT Posts: 1,024
    Helloo,

    Where is the Q from?

    I'm with you, £444.44.

    B x
  • Lolo BeanLolo Bean New Member Registered Posts: 13
    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
  • BeccaLouJ9BeccaLouJ9 Experienced Mentor DevonFMAAT Posts: 1,024
    ..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 BeanLolo Bean New Member Registered Posts: 13
    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:
  • BeccaLouJ9BeccaLouJ9 Experienced Mentor DevonFMAAT Posts: 1,024
    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 BeanLolo Bean New Member Registered Posts: 13
    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
  • BeccaLouJ9BeccaLouJ9 Experienced Mentor DevonFMAAT Posts: 1,024
    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
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