Dividend Received does not add up

General
1

I received a dividend payment into my ISA for Vaneck Morningstar Developed Market Dividend Leaders #25, but based on the dividend rate (€0.17 / ± £0.151531) and the amount of shares I had on ex-date, it looks like I’ve been short-changed by InvestEngine.

I also pulled a “Full client valuation report 6 Apr 2022 to 11 Mar 2023” to double-check all my numbers and transactions for this particular ETF

The previous dividend I received in December was correct.

I have this particular ETF as a “duplicate” on the LightYear platform under ticker TDIV and the dividend I received, less 15% withholding tax on the payment date of 8 March, was the correct amount.

See Netherlands - Corporate - Withholding taxes for tax rates.

I have applied EUR to GBP exchange rates and to cover all bases I checked the rate on the ex-date (1 March), the payment date (8 March) and today which is negligible so no real impact.

Just for convenience, here is one place to check and calculate your gross dividend for this particuar ETF: TDGB Dividend Calculator - VanEck ETFs (dividenddata.co.uk)

I have deducted the Dutch WHT of 15% so that’s accounted for.

It would appear that InvestEngine has underpaid me…

Would be interesting to hear if anyone also invested in this ETF, received the correct dividend amount or not.

1 Like
2

Same here.
I expected £3.27 and received £2.87…
Actually also TREG looks incorrect, smaller numbers as I have little shares, but similar discrepancy

2 Likes
3

It looks almost as if they applied a Dollar to Pound exchange rate instead of Euro to Pound but still it does not add up.

4

@UncleBob Same for me, although I noticed in the link you included, that shows a WHT for dividends of 15%, that there is a new rate for 2023 for interest and royalties of 25.8%. Now if apply the 25.8% rather than 15% then this does equal the dividend amount I got from IE. This seems too much of a coincidence?

1 Like
5

The plot thickens.

I see no changes in the tax treaties between the UK and the Netherlands.

Also checked an alternative source to confirm WHT rates:

https://dits.deloitte.com/#Jurisdiction/40

I have contacted IE support so it will be interesting to see what they say. I hope to receive a response backed by facts and figures but we’ll see…

1 Like
6

Guess it depends if the UK is wrapped up in this

Are we a low tax jurisdiction but as noted this shouldn’t apply until 2024

low tax jurisdictions

On January 1, 2021, a withholding tax was introduced on interest and royalty payments to related parties in low-tax or non-cooperative jurisdictions. The tax rate of the Dutch withholding tax is equal to the highest Dutch corporate income tax rate, which is currently 25.8%. As from January 1, 2024, dividend distributions to related parties in low-tax or non-cooperative jurisdictions will also be taxed under this withholding tax.

7

My TDGB dividends are magically correct now…
No explanation given. Another mystery of IE

8

Yes mine have been corrected as well.

9

Yup. Mine too.

I suppose I can now say “Happy Days!”

I also have not heard back from the support team when I raised this issue via the contact us option over the weekend. The only response I had was to say they don’t work weekends but someone will come back to you on Monday (today)

10

The mistake they made was probably too embarrassing, so they decided to fix it in silence… :wink:

11

We have corrected the mistake as son as we learned about it.
Please be sure to contact us via support@investengine.com when you spot that there’s something wrong with your account.
This will allow us to look into the problem much faster and resolve it as well : )

12

So glad I went with another provider.
IE should know what is going on and explain.