Dividend re-investment plan
This section provides you with general information on dividends and the payment options available to you as a Hays shareholder.
What is a dividend?
A dividend is a payment made to shareholders, the level of which is decided by the Directors of Hays based upon Group financial results.
Who is entitled to receive a dividend?
The dividend is paid to everyone who holds shares at a deadline date ('record date') and the dividend paid is based on the number of shares held on the share register at the record date.
When do I receive dividends?
Hays currently pays dividends twice a year - usually in May and November.
The dividend payment in May is called the 'interim dividend'. This, plus the remainder, paid as a 'final dividend', is approved by the shareholders at the Annual General Meeting.
How can I receive my dividends?
You have several choices:
If cash dividends are paid directly to your UK bank or building society account via BACS, this avoids the risk of cheques being lost in the post and means your dividend will be in your account on the same day the dividend payment is made. You will receive a tax voucher from Equiniti confirming the amount of dividend and the account into which it has been paid. Please note that you should inform Equiniti of any changes to your bank account.
What is the Hays plc Dividend Re-investment Plan ('DRIP')?
Hays plc has introduced a Dividend Re-investment Plan (DRIP) to enable shareholders to re-invest the cash dividend that they receive, in shares on competitive dealing terms.The DRIP is currently provided by Lloyds TSB and administered by Equiniti Financial Services Limited on their behalf. From 1 March 2008 Equiniti Financial Services Limited, which is authorised and regulated by the Financial Services Authority, will become the DRIP provider.
If you decide to participate in the DRIP your cash dividend is paid directly to Equiniti who then calculate and buy the number of Hays shares you are entitled to on the stock market. Equiniti then allocates the shares to you. Any cash balance remaining after the purchase of shares will be retained and added to your next dividend.
If you wish to participate in the DRIP, further information can be obtained by contacting: The Share Dividend Team, Equiniti, Aspect House, Spencer Road, Lancing, West Sussex, BN99 6DA. Telephone: 0871 384 2268 (00 44 121 415 7173 if dialling from outside the UK) and ask for the Share Dividend Team who will send a DRIP pack and application form to you.
The DRIP is not available to USA or Canadian based investors who are prohibited from taking this option by local legislation.
I did not receive my last dividend cheque or tax voucher. What should I do?
If you did not receive or think you have lost your dividend cheque you should contact Equiniti as soon as possible, confirming which payment has been lost. They will then arrange for the cheque to be stopped and issue you with a duplicate, free of charge to individuals/non-corporate holders.
If you lose your tax voucher(s) you should notify Equiniti, confirming which tax voucher(s) have been lost, They will arrange to issue you with duplicate(s).
I have found an out of date dividend cheque. What shall I do?
Dividend cheques are valid for six months from the date of payment. After this time you should return any uncashed cheques to Equiniti, who will issue you with a replacement free of charge.
Do I pay tax on my dividends?
When you are paid a dividend you will receive a tax voucher showing the net amount of dividend received and the tax you are deemed to have paid. This credit is currently set at 10% and, generally, cannot be refunded to non-taxpayers. You should retain your dividend voucher as it may be requested by HM Revenue and Customs.
The dividends received on your shareholding are treated as though they have been paid after deduction of income tax. Broadly speaking, if you are an individual resident in the UK whose income does not exceed the basic rate limit then that tax credit attaching to the dividend will be regarded as the full extent of your liability. If you pay tax at the higher rate, you will have an additional liability to pay. For more information on your personal tax position, you should consult a financial adviser or contact your Tax Office.
When you sell any of your Hays shares, you may have to pay Capital Gains Tax (CGT) if they are sold at a profit. The rules can be complex and, again, it may be worth seeking financial advice before you sell.
