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Gross rate |
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Gross rateThe interest rate earned on money placed on deposit with banks and financial institutions before deduction of tax.The interest rate charged to lenders by banks, mortgage providers and other lenders before any tax relief is taken into account.Similar MatchesGross marginGross marginThe difference between the selling price of an item and the purchase or manufacturing cost, expressed as a percentage of the selling price.For example, if it costs a company £6 to manufacture an item and the selling price is £10, the gross margin is:(£10 - £6) / £10 x 100 = 40%When looking at a company's Report and Accounts, the gross margin of the business as a whole is its turnover less the cost of sales, divided by the turnover, multiplied by 100.For example: (£2,000,000 - £1,200,000) / £2,000,000 x 100 = 40% Grossing upGrossing upUK shareholders receive dividends with a tax credit of 10%. This means that a notional 10% tax has already been paid by the company paying the dividend and the amount you receive as a shareholder is 'net' of that tax payment.But in order to calculate your individual tax liability on the income, which may be higher than 10%, you have to 'gross up' the dividend - that is add back the tax deducted - and work out your tax liability from the gross figure.Example:You hold 1,000 shares in Bigyield plc which announces that it is paying a dividend of 9p per share. You actually receive £90 as a net dividend, but the company has also notionally but not actually paid £10 of the gross amount as tax on your behalf. So, although you only received £90, the tax position is: Actually received : £90.00 Tax credit: £10.00 Grossed up income: £100.00If you are a higher rate taxpayer, the amount you have to pay in total on the dividend is 32.5% which, on £100, is £32.50. Since you have a tax credit of £10, the additional amount payable is £22.50.Note that £22.50 is exactly a quarter of £90. A quick way for a higher rate taxpayer to calculate the additional tax payable on a UK dividend is to multiply the net amount received (£90) by 25%. Gross interestGross interestInterest earned before taxes are deducted. Gross salesGross salesTotal sales calculated by summing all sales at invoice values, neglecting any adjustments such as customer discounts or returns. Adjusted gross incomeAdjusted gross incomeIn the US, a person's income on which federal income tax is calculated. This is gross income less adjustments such as Individual Retirement Account, Simplified Employee Pension Plan, Keogh Plan and alimony payments but before itemised deductions such as state and local income taxes, interest expenses and medical expenses. Further SuggestionsGross parityGross Income Gross profit margin gross income gross Gross spread Gross lease Gross Income Multiplier gross national product Adjusted gross income (AGI) Gross income Gross Lease Gross per broker Adjusted Gross Income gross profit gross interest Gross national product gross domestic product Gross Weight gross yield Gross domestic product (GDP) Gross domestic product Gross output Gross profit gross redemption yield |
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