Text 2: Taxes in the uk

Individuals, partnerships and trusts pay income tax and capital gains tax. Companies pay corporation taxes.

Income tax and capital gains tax are charged for a tax year, sometimes called fiscal year or year of assessment. The tax year runs from 6 April to the following 5 April.

Corporation taxes are charged for a financial year which runs from 1 April to the following 31 March.

Companies generally pay corporation taxes nine months after the end of the accounting period.

Individuals usually pay taxes in two equal instalments on 1 January and 1 July. Usually taxpayers are given 30 days to pay from the date of issue of an assessment.

Tax assessments are normally based on returns issued by the Board of Inland Revenue, often called the Inland Revenue or the IR, for completion by the taxpayer.

If the company or person believes the assessment is incorrect an appeal may be lodged against it. Appeals are made to either the General Commissioners or the Special Commissioners. the commissioners are completely independent of the Inland Revenue.

Employees pay taxes in a different way. When an employee takes a new job he has to give his new employer his P. 45. This is a document which shows the employee’s tax coding and the amount of tax he has paid so far in the tax year.

If an employee has no P. 45 he is put on an emergency coding. This means he has to pay tax at the single rate until his P. 45 is found or until the tax office clarify his tax position. When the position is clarified the employee receives a refund of any tax overpaid.

Employees are taxed under PAYE system which means Pay as You Earn. Every employee has the tax deducated weekly or monthly. The deductions are calculated by reference to the employee’s tax coding. This information is supplied to the employer by the tax office.

Vocabulary

trust тест, концерн

income tax податок на прибуток

corporation tax податок на прибуток

корпорацій

taxpayer платник податків

gain збільшення, приріст

capital gains прибуток з капіталу,

приріст капіталу,

прибуток від операцій на

фондовій біржі

fiscal фіскальний, фінансовий

бюджетний

assessment нарахована сума податку

installment частковий внесок

returns дохід, надходження

inland внутрішній

revenue дохід

Board of Inland Revenue Департамент внутрішніх

податків та зборів

completion заповнення (листа)

appeal апеляція, скарга

to lodge подавати (скаргу)

commissioner уповноважений, комісар

emergency надзвичайна ситуація

to clarify вносити ясність,

уточнювати

refund відшкодування,

повернення

to refund повертати,

відшкодовувати

9. Underline the Modal Verbs, read and translate the sentences:

1. The taxes cannot be high.

2. If the company thinks the assessment is wrong an appeal may be lodged against it.

3. This must be the emergency exit.

4. It must be very late now.

5. It may rain tomorrow.

6. She can’t be so clever.

7. Can he speak so many languages?

10. Translate into English:

1. Можливо, вони зроблять частковий внесок в кінці місяця.

2. Можливо, голова ради директорів повернеться до Москви завтра.

3. Вона повинна бути зараз на нараді.

4. Не може бути, що він не знає цю інструкцію.

5. Невже вона розмовляє п’ятьма мовами і навіть японською?

11. Say how the following words are formed:

partnership information independence

assessment application reference

installment taxpayer emergency

completion employee clarification

deduction employer chairman

12. Write down the Ukrainian equivalents:

to lodge an appeal Board of Inland Revenue

tax coding to be put on an emergency coding

tax office to refund the tax overpaid

tax year to be taxed under PAYE system

tax position to calculate deductions

13. Find the English equivalents in the text:

1. податок на прибуток від діяльності на фондовій біржі;

2. податок на прибуток корпорацій (фірм, організацій та інших юридичних осіб);

3. податок з доходів фізичних осіб;

4. платник податків;

5. фінансовий рік;

6. звітний період;

7. доходи.

14. Complete the sentences with the following words:

corporation taxes, income taxes, a tax year,

financial, fiscal, assessment, installments

1. Individuals, partnerships and trusts pay ...

2. Income tax and capital gains tax are charged for ...

3. A tax year is sometimes called ... year or year of ...

4. Corporation taxes are charged for a year ...

5. Individuals usually pay taxes in two ...

6. Companies pay ...

15. Find the answers in the text:

1. When does a tax year start?

2. Do individuals or companies pay taxes for a year starting on this date?

3. Who pays corporation taxes?

4. When does a financial year start for them?

5. When do they pay corporation taxes?

6. When do employers pay taxes?

16. Write down the questions for the following answers:

1. _____________________- The Board of Inland

_____________________ Revenue does.

2. _____________________- It is to be completed by a

_____________________ taxpayer himself.

3. _____________________- In this case an appeal may

_____________________ be lodged.

4. _____________________- To either the General

_____________________ Commissioners or the

_____________________ Special Commissioners.

5. _____________________- Yes, they are independent of

_____________________ the IR.