divi

[henrys]

my pal has got 500 shares in a company
he is getting a dividend of 24.2p a share
how much does he expect to get
thanks

[dzug]

Just do the arithmetic - it's not difficult.

[Gef]

OK i'll be a bit more generous than dzug (i'm in a good mood).

500 x �0.242 = �121.

[Catso]

GCSE A in maths, henry?

[henrys]

i just wanted to be correct
my pal is awful fussy
thanks

[Im a BusyBee]

there would usually be a tax deduction made so i wouldnt expect him to get all of that - i think its either 10 or 20% that would be deducted before he gets it. he would be given a statement showing the deduction for tax purposes as it needs to go on self assessment form.

[dancecaller]

No tax deduction, but a tax credit. The divi is paid at the stated rate, it is assumed that the company has paid tax on profits so they give you a tax credit of 10% (ish, you will see on the voucher that the tax credit is 10% of the total, divi paid+ tax credit).
The tax credit in this case will be 500*.242/9. Or �13.44
You put it on a self assessment form but it makes no difference as the tax is already paid and you cannot claim it back if you don't pay basic rate tax. If you pay higher rate I think they tax it some more.