1, Read the text and fill inj the following exercise accordingly, then find the English equivalent of the words.
The road to digital tax planning
Submitting tax returns online might be the norm for many companies, but thousands of small businesses have yet to get up to speed
More than 40 years after predictions about the “paperless office” became commonplace, one small corner of the working world is going digital.
This spring sees the start of a government initiative, Making Tax Digital (MTD), which aims to get individuals and businesses to submit tax returns online. The plan is that the scheme will be rolled out in phases over the next couple of years, starting with VAT this April; but there are plenty of voices calling for an extension in order to give more businesses the chance to comply.
“HMRC are not listening to small businesses,” according to Lord Forsyth of Drumlean, chairman of the House of Lords Economic Committee, which in November published a report recommending voluntary instead of mandatory compliance with the VAT changes in April. “Small businesses will not be ready for this significant change to their practices, especially with Brexit taking place three days earlier.”
Digital accounting can help small business owners keep better track of their income and outgoings, improving the ability to make accurate and timely decisions
Yet despite the predictions of doom, many businesses are already onboard with the change. If you use one of the popular branded software accounting packages such as Xero, you are probably already compliant (check HMRC’s website here for a list of compatible software).
So how do you know what your business needs to do? A first step is to understand the change, which requires businesses to maintain digital accounting records – that is, using MTD-compatible software to record and file your returns. Paper records will, ultimately, stop meeting the legal requirements for tax legislation.
Such a move will likely benefit your business by increasing efficiency, particularly if records are moved to the cloud. Digital accounting can help small business owners keep better track of their income and outgoings, improving the ability to make accurate and timely decisions.
Crucial is the use of digital record-keeping. You may already file your returns online via HMRC’s website, but this does not mean compliance; the data transfer must be between software programmes, rather than re-keyed or cut-and-pasted.
For HMRC, digital returns will not only increase efficiencies but save money; according to HMRC’s own estimates, avoidable mistakes – essentially, input errors – cost the Exchequer more than £9 billion a year.
The next step is to familiarise yourself with the MTD timetable, which phases in the digital requirement for different taxes over a period of several years. It starts this April with MTD for VAT; so most VAT-registered businesses will have to file VAT returns digitally this spring (there is a six-month deferral period for about 3.5 per cent of HMRC’s companies, including public sector entities and not-for-profit organisations). Some small businesses with complex needs will have to delay starting to file under MTD until October 2019.
If you are under the current turnover threshold of £85,000, you have until April 2020 to meet the digital requirements. Smaller business can continue to use HMRC’s online portal to file returns – though you can elect to submit your records digitally, a sensible move for any organisation already set up to do so.
The deadline for digital records for other taxes such as income or corporation tax has been pushed back to April 2020 at the earliest, giving most smaller businesses at least two years to adapt to the changes. It is a welcome breather, given the slow pace of change; according to a survey from the Institute of Chartered Accounts (ICAEW), carried out in July, only 38 per cent of businesses use accounting software. A quarter of businesses still use paper-based accounting systems.
It may seem annoying, but it could benefit your business in the long term
According to Anita Monteith, ICAEW Technical Tax Manager: “We support HMRC’s ambition to increase the use of digital technology, but we are concerned that many businesses are not going to be ready for implementation in April 2019. The lack of awareness among businesses about MTD is of concern and needs to be addressed: the communications on MTD do not appear to be getting through to VAT-registered businesses.”
ICAEW’s survey found that only half (51 per cent) of all UK VAT-registered businesses had heard of MTD for VAT, with 46 per cent not using accounting software.
“Given the need to review existing systems and potentially evaluate, purchase and test new software, this is a worry,” said Ms Monteith. “MTD for VAT is a major change in tax administration and it is important for the UK tax system that it is a success: this is too important to be rushed.”
According to the House of Lords report, some 400,000 companies (around a third of those affected) are still not aware they will have to file digitally from this April. Adrian Rudd, chair of the CIOT/ATT Digitalisation and Agent Strategy Working Group (DASWG), said: “These knowledge gaps could mean normally compliant firms fail to fulfil their new obligations.”
There will be penalties for companies that fail to meet the new requirements, which will be treated as a late submission and fined accordingly. However, HMRC has confirmed there will be a grace period, with no financial penalties for record-keeping failures till March 2020.
Finally, if you are not already registered with HMRC, make sure you leave enough time to do so; it can take up to three weeks to complete the registration process.
MTD may sound scary, but many businesses do not need to worry, as their existing software will already be compliant. If you find it is not, use this deadline as an opportunity to improve and upgrade your record-keeping. It may seem annoying, but it could benefit your business in the long term.
The new plan of the government is1, ………………………..and it will not be one sweeping change but 2,…………………
However, there is a concern that 3,……………………………………………………………
Despite this the situation is not so bad because 4 …………………………………………
It will bring about positive changes since 5,………………………………………………….
and another positive change will be 6………………………………………………
Timetable: April 2019 7,…………………………………………………..April 2020 8…………………………..+ 9,……………………………………….
The problem with VAT –registered businesses is that 10, …………………………
Even normally compliant firms are in danger because 11, …………………………….
The consequence of non-compliance will be 12…………………………….however 13,…………
beadni az adóbevallást:
fokozatosan kerül bevezetésre
meghosszabbítást követel
kötelező teljesítés
jobban nyomon követ
ÁFA bevallást ad be
egy bizonyos árbevételi küszöb alatt
foglalkozni kell vele
nem teljesíti a kötelességét
lesz türelmi időszak
feljavítani a nyilvántartást
KEY
1,To digitalize the tax return both for individuals and businesses
2, buti t will be rolled out in phases over the next period of time
3, businesses will not be ready for this significant change
4, a lot of companies are already onboard with the change
5, will keep a better record of their incomes and outgoings
6, it will save money for the Exchequer
7, VAT registered companies will have to file their VAT retur digitally
8, companies under the turnover threshold ofŁ85 000
9. deadline for digital records for other taxes
10, they are not aware of the change
11, their knowledge is patchy
12, penalties like for late submission
13, there will be a grace period
submit a tax return
be rolled out in phases
call for an extension
mandatory compliance
keep better track of
file a VAT returns
under a turnover threashold
needs to be addressed
fail to fulfill their obligations
there will be a grace period
upgrade the record keeping
TEST ON FINANCES
1, Your salary is transmitted to your
a, overdraft c, savings account
b, cash pool d, current account
2, Your invoice should have been paid earlier so it is
a, due b, overdue
c, solvent d, insolvent
3, …………..are traded at the Stock Exchange
a, collaterals b, receivables
c, securities d, bank notes
4, …………………..is a crime
a, embezzlement b, tax allowance
c, transaction d, austerity measures
5, Acquisition is a good opportunity for
a, tax evasion b, revenue growth
c, tax returns d, cooking the books
6, Which is the odd-one-out
a, gains b, yield
c, revenue d, expenditures
7, What cannot you do with money
a, withdraw b, allocate
c, raise d, disclose
8, Which is a cause for concern?
a, brain drain b, booming economy
c, letter of credit d, track record
9, The EU wanted to levy tax….an Irish company, however it has no right to interfere…..national taxation.
a , (for/in b, on/for
c, on/with d, for/with
10, Which is not a problem with offshore businesses
a, loophole for companies b, drains income from the country
c, creates employment d, hides criminal activities
11, The acquisition is ………when the acquired company is against the control exercised by the other company.
a, hostile b, profitable
c, cautious d, redundant
12, The negative side of M&A is……
a, divided R&D cost b, mistrust
c, bigger power of the brand d, expanding market share
13, Which out of these expressions do NOT refer to an upward tendency?
a, soar b, skyrocket
c, plunge d, take off
14, Tax evasion is the same as
a, tax allowance b, tax fraud
c, tax brackets d, tax relief
15, ……………….is when the collateral is your real estate.
a, bond b, overdraft
c, solvency d, mortgage
KEY
1,d 2, b 3, c 4, a, 5, b 6, d 7, d 8,a 9, c 10, c 11, a 12, b 13, c 14, b 15, d
Listening
1, Why did he go to Armania?
2, What was his experience there?
3, What was his test?
4, What kind of revolutions did he talk about?
5, What is the mentality and the perception concerning those working in the service industry in Armania?
6, And in the west?
7, What is the waiter rule?
8, How can people make a career in the west?
9, What is his advice to
entrepreneurs?
families?
individuals?
KEY
1, He got the asignment to deal with a cafe network
2, People do not smile and do not know anything about the service industry
3, He smiled at everybody while travelling on the underground
4, First and second industrial revolutions, a service revolution and the customer service revolution
5, They look down on them and find them cunning and the whole job is contemptible
6, it is mutually beneficial, there is mutual respect so it is not difficult to consider the customer as king
7, The person who is kind to you but not kind to a waiter is not a kind person
8, They are self-made men usually working their way up to the top from a humble position
9, -treat their employees as family members and in exchange they will treat the customers alike
-let their children work during their studies as in this way they have a higher chance to make financial success
-respect everybody
TEST ON E_COMMERCE
1, China already dominates Asian ecommerce, ……………..over 80 per cent of the region’s online shopping sales
a, take up, b, accounting for c, turning up d, came up with
2,Ecommerce sales account for 28 per cent of China’s total retail sales, leaving a vast section of the country’s spending power ………..by ecommerce platforms.
a, unmined b, underlined c, untapped 4, undermined
3, A diverse range of local ecommerce websites, including megastores Alibaba and JD.com, ………… with upstart social ecommerce platformso, and in the process ……………….innovative new ways to shop online.
a, are competin/are establishing b, compete/establish c, are competing/establish d, compete/are established
4, Global ecommerce players like Amazon are heavily investing in the country, an indication that the American firm is preparing to ……………..
a, growing activities b, expanding operations c, expand its operation d, rise operations
5,Local companies like Magazine Luiza …………. an omnichannel approach to ward off challengers.
a, have been adapted b, have adopted c, have adapted d, have be adopting
6,Poland ranks …….one of the strongest ecommerce markets in Central and Eastern Europe, …..the sector enjoying double-digit growth every year since 2012.
a, on/in b, as/in c, with/on d, as/with
7,The ecommerce landscape in the country ……………local players,
a, is dominating heavily b, dominates the c, is heavily dominate d, is heavily dominated by
8, Strong Internet ……………rates and growing ………..of the safety of buying online, alongside a new Sunday trading ban, are expected to further ……..the Polish ecommerce industry.
a, penetration/levels/grow b, penetration/awareness/boost c, presence/awareness/decline d, connection/knowledge/boom
9, Chinese e-tailer Aliexpress …………to pursue Polish customers by offering free delivery.
a, has been working hard b, had been working hard c, has been worked hard d, had worked hard
10, The ecommerce sector in the United Arab Emirates isn’t …well developed … Western markets, accounting for a meagre two per cent of total retail sales.
a, so/than b, as/so c, as/as d, as/than
11,The growth potential in the emirates is vast, thanks to a ……….young population, and an increasingly comprehensive selection of goods available online, …… are allowing e-tailers to more effectively compete against traditional shopping malls.
a, improved/what b, burgeoning/that c, improved/which d, burgeoning/which
12, A number of recent …….deals are also set to increase competition in the industry, most notably the purchase of Dubai-based ecommerce platform Souq by Amazon for an ………sum.
a, high-end/untold b, high-profile/undisclosed c, highly recommended/unforseen d, highly profitable/unjust
13, A central part of the UAE’s transition to a more ecommerce-focused economy is the launch of two ecommerce ‘free zones,’ which provide high-tech warehouse spaces where goods ………before …….off around the world.
a, can be held/being shipped b, are held/ are shipped c, can be hold/can be shipped d, can held/to be shipped
14, …… slowing down in recent years, India’s ecommerce sector is …. growing at a faster rate than other leading Asian nations including South Korea, China and Japan.
a, in spite of/however b, despite/still c, Although/yet d, since/already
15, According to research from Forrester, Indian ecommerce sales ……..experience a growth rate of almost 30 per cent by 2022, rapidly expanding from the current annual level of $27 billion.
a, are expected to b, are explained to c, seem to be d, are likely
16, Local and foreign ecommerce firms are fiercely competing …………and are making major investments in infrastructure and logistics solutions.
a, to give a hand b, to go hand in hand c, to live from hand to mouth d, gain the upper hand
KEY
1,b 2,c 3, a 4,c 5, b 6,d 7, d 8, b 9, a 10, c 11,d 12, b 13, a 14, b 15, a 16, d