Ex.18. Scan the text bellow and give headlines to each paragraph. The UK economy changes year after year

The UK economy changes year after year. The UK government seeks to achieve many policies including economic growth, improving the standard of living of people within the country, controlling inflation and reducing unemployment. Its policies will determine the nature and type of decisions that it makes. The government controls the economy in a number of different ways. (0) __________ . Another way is through the provision of subsidies that make goods or services available for people. A third way is through taxation. Taxes collected by HMRC* for the government fall under two headings: direct and indirect taxation.

(1) __________ . Income tax is paid upon a person's income or, for partnership businesses, upon the partners' incomes. Corporation tax is levied upon the profits of UK companies. HMRC also collects National Insurance contributions. Although these are not really a tax, they are often portrayed as one. National Insurance is the major source of funds used by the government to provide state benefits such as pensions and jobseekers' allowances.

Indirect taxation is not as noticeable as direct taxation. (2) __________ that consumers purchase. Value Added Tax (VAT) at a rate of 17.5% is added to the price of most goods that a consumer purchases. For example, the price of a DVD includes 17.5% VAT. There are, however, certain goods that are zero-rated. (3) __________ . Governments have continually reviewed the main issues behind taxation. This especially involves deciding who pays the taxes. This process aims to develop a fair system that applies not just for individuals but also for companies.

A good communication system involves effectively transferring information between a sender and a receiver. HMRC has developed effective communication systems to ensure that the collection of tax revenues is efficient. (4) __________ . They use the latest technology to simplify the systems, provide an electronic form in an online version for self-employed people. On this electronic form the calculations are done for them. They also provide opportunities (5) __________ .

HMRC uses a variety of different media in order to publicise and inform self -employed people about their tax obligations. (6) __________ . These campaigns emphasise the need for self-employed people to comply with the law and give deadlines for completing the forms. A hotline has been set up for people to report anyone not registering as self-employed and evading paying tax.

*HMRS – Her Majesty’s Revenue and Customs – Британська Податкова Служба

Ex. 19. Read the text. Choose the best sentence A-F to fill each of the gaps 1-6. Do not use any letter more than once. There is an example at the beginning.

0One way is through legal statute or legislation using an Act of Parliament that creates new laws.

A For example, VAT does not apply to food, baby clothes or prescription products.

B Indirect taxes are added to the price of the goods and services

C for feedback to clarify any queries.

D Direct taxation is levied upon incomes or the resources of individuals and organisations.

E These include television, radio, newspapers and direct mail.

F They are quick, secure and convenient.

Ex.20. Read the text again and decide whether the following statements are true (T) or false (F). Correct the false statements.

1. Government can control the economy in a number of ways.

2. Income tax is an example of indirect taxation.

3. Taxes are not levied on partnerships and personal incomes.

4. National Insurance is the major source of funds used by the government to provide pensions and jobseekers' allowances.

5. VAT is added to absolutely all goods.

6. HMRC has developed effective communication systems for efficient tax collection.

7. Self-employed people choose a date for paying tax themselves.

8. Citizens can use a hotline to report anyone evading paying tax.