Find words in A and B opposite with the following meanings. 1. an adjective describing taxes on revenue or income

1. an adjective describing taxes on revenue or income

2. a tax that has one rate that is the same for everybody

3. money paid by the government to sick and unemployed people

4. a tax that has a higher rate for taxpayers with a higher income

5. an adjective describing taxes on consumption or spending

3.Are the following statements true or false? Find reasons for your answers in A, B and C opposite.

1. Capital gains are generally taxed at a higher rate than income.

2.The same sum of money can be taxed more than once.

3. Sales taxes can be both proportional and progressive at the same time.

4. Excise duties are extra sales taxes on selected products.

5. Many international companies have their registered headquarters in small countries where they do only a small proportion of their business.

6. Employees will generally pay less tax if their employer reduces their salary a little and provides them with a car.

7. Tax avoidance is illegal.

8. Perks and loopholes are forms of tax evasion.

4.Find five verbs in A and B opposite that can be used to make word combinations with ‘tax’.

______________

______________

______________ tax

______________

______________

My name's Marcus. I work for a bank. I'm on PAYE

(Pay As You Earn). This means that tax is

automatically deducted from my salary. My salary

isn't particularly high, so I only pay tax at the basic

rate. My personal allowance is £5,000 a year. Then I

pay 10% on the next £2,500, and 22% on

everything above that. I also have to pay National

Insurance, of course, which is another 9%. My gross

pay is about £19,000 but my take-home pay is

around £15,000.

My name's Yvonne. I'm a self-employed dentist. Every year I have to fill in a tax return. Dentists can earn quite a lot of

money, and my income is usually well into the higher rate. In other words, I have to pay 40% on everything I earn over

£45,000 a year. However, the salary I pay my receptionist, the rent for my surgery and the cost of my equipment are all tax deductible. Only about half my turnover counts as taxable income. The National Insurance rules are quite complicated

for self-employed people, but my accountant takes care of that for me.

5.Does each sentence describe Marcus, Yvonne, both or neither?

	Mar Marcus	Yvonne
1. Is a tax payer	x	x
2. Works for himself / herself
3. Has tax deducted at source
4. Submits an annual tax return
5. Income exceeds the personal allowance
6. Income exceeds the 10% band
7. Income exceeds the 22% band
8. Pays tax at the higher rate
9. Net earnings are about £4,000 lower than gross earnings
10. Gross earnings are below the National Insurance threshold
11. Pays National Insurance
12. Has tax-allowable expenses
13. Employs an accountant
14. Lives entirely on unearned income

Over to you!!!