Unit 5. Briefing on Taxation and insurance Policies
Part Ⅰ Getting ready
A. The following words and phrase will appear in this unit. Listen carefully and study the definitions.
1. grand:
2. bonus:
3. premium:
4. briefing:
5. levy:
6. opt:
7. building society:
8. allowance:
9. reverse:
B. Listen to five sentences. Write down the numbers described and the key words that help you get the answer.
Example: You will hear: Our last claim was for ￡2 000, but this one will be three times that.
Please write down: Key words: 2 000/three times
Answer: 6 000
a. We expected about eight thousand, but it was half of that.
b. We estimated about two thousand, but it's twice as much as that.
c. Her salary is about two thousand, and his is about double that.
d. We thought about eight thousand, but it's not more than a quarter of that.
e. We thouht about four thousand, and it's similiar to that.
C. Listen to the following dialogues. Complete the exercises.
Dialogue one: Complete the statements.
Dialogue one:
A: About 24% of my income goes in tax, which is quite low — I don't know how they manage in places where tax rates are higher. I have a good job — I suppose I earn about thirty grand with bonuses, but I wouldn't say that we were well-off. We can't afford to run two cars. The cost of living is very high here.
B： Does your wife work?
A： She does at the moment. We're trying to clear our overdraft, and there isn't a lot left over. We do spend a lot on food, but then we are a big family — it's difficult to economize. We spend very little on holidays, we usually go camping, which the children prefer anyway. We did go abroad for a week last year but that was exceptional. I don't know where the money goes. We don't often go out.
B： What about hobbies?
A： I'm keen on sailing, but it's an expensive pastime. We do spend a bit on the children, Angela loves riding, but we're careful, we have to be.
Dialogue two：
A： We were broken into yesterday. They took the video. It was brand new.
B： oh no,what was it worth?
A: About ￡300.
B: I hope you're insured.
A： Yes, luckily I paid the premium last week. But I'll have to make a claim. It's a real nuisance.
B： Are you covered for electrical goods?
A： I assume so. I'll check — I have to call them to get a claim form.
Dialogue three:
A: His commitments are very similiar to mine. We both have a family to support and a mortgage to pay. My guess is that his income is about the same as mine. I don't understand how he can afford a cottage in the country.
B: He probaly borrowed the money. Your basic situation may be similiar to his but he's very different from you. He never saves a penny. I bet you invest far more than he does in pension schemes, and so on. For example, how much do you spend on insurance per year?
A: That's my business.
B: OK, let's say it's three thousand, including life insurance.
A: It isn't nearly as much as that!
B: Maybe not, but the point is that he probably spends twice as much as that just on entertaining.
Part Ⅱ Briefing on personal taxation
A The following is the transparency for the presentation. Listen carefully and complete the following outline. Pay special attention to the numbers.
Good afternoon, ladies abd gentlemen. What I'd like to do essentially is to answer two questions. Firstly, how is personal taxation structured in the UK? And secondly, how is it levied?
So, if you take a look at this transparency, you'll see that, contrary to popular opinion, UK personal taxation is both simple and relatively low. There are two rates: 25% on taxable income up to ￡23700, and 40% on income above this figure. You'll notice I say taxable income, as, like most countries, there are a series of deductions and allowances which can be taken into account before arriving at your net taxable income figure. The major one relates to the status of the individual: a single person's allowance at present stands at ￡3295, while a married person's allowance is currently ￡5015.
At this point I should mention that the goverment has recently introduced legislation which allows married couples to opt for separate taxation.
Other allowances or deductions which are common are, firstly, tax relief on private pensions. At the moment this allowable up to 17.5% of totle income, to the age of 35, rising to 40% at above 60 years old. Also the tax relief on mortgages or loans or buy a house—here there is currently 7% tax relief on the interest payable to the bank or Building Society.
Right, that covers the first part of my presentation, I'd now like to move on to how personal tax is levied.The Inland Revenue obliges employers to operate a PAYE(Pay As You Earn)scheme, which means the tax is deductible at source. In other words, by the employer before making out the monthly salary check or bank transfer to the employee. The tax is then collected direct from the employer. At the same time I should mention that the employer is obliged to deduct National Insurance from the employee's salary-the employee's contribution being roughly 9% of income, the employer's ranging from 5 to 10%. These are approximate figures as it is also income-related.
Right, ladies and gentleman, that covers the broad picture. I'm sure you'd like to ask me for some specific details.
B Now listen again. Complete the following statements.
Part Ⅲ Should I buy an insurance policy? (Ⅰ)
A Listen to the dialogue. Write down the key points. Then complete the paragraph.
J — Mr. Jackson I — Insurance salesman
J: Good morning. Er, my name is Jackson. Er, I'm interested in taking out an insurance policy. I've been told that, that this is quite a good way to save money. Is it a good way to save money? [Yes…] Is this true?
I: ...it's one of the, one of the ways of saving money.
J: Erm... I haven't got very much money, erm, I don't earn very much. What... how much would I have to pay for this, if I, if I (take)...
I: As little or as much as you like to pay. How much had you in mind, in fact?
J: Well, erm… er, I don't really know anything about it. What's… how much does one pay?
I: Well, you can work it in two ways. You either sort of aim at a fixed objective, say, a straight thousand pounds policy. In other words, you have your object in mind and you want to know how much it's going to cost you. Alternatively, you can work the reverse way, where you say "I would like to save two five pounds a month, over so many years. What would this produce for me?
J: I see. And this thousand pounds, I get it... when I die... or else at a certain age, is that right?
I: Well, this would depend entirely upon your needs. Now, are you in fact a single man or married?
J: No, I'm unmarried.
I: You are unmarried. Erm, have you any dependents at all?
J: Well...
I: F, for example, you have an … dependent mother, or dependent sisters or brothers?
J: Not dependent, no. Mm. But I suppose as time goes on, they may become more dependent, er [Mm]
J: It's difficult to say.
I: There's always a possibility, I presume, that you may get married at some stage in the future.
J: Quite. Yes. Yes.
I: Uh-huh, erm... so I take it that your main interest in life insurance is, in fact, as you say, in saving money? Is this right?
J: Yes, that's, that's the main thing. [Now…] One doesn't think about death so very much.
I: What sort of object in saving would you have? I mean, why do you feel that you want to save money?
J: Well, I think that at a certain age, erm, I haven't decided what age it would be, it would be nice to have a, a lump sum. I suppose for example, when I retire, it would be nice to have a lump sum for moving away or, erm, buying a house or doing something like that. [Yes] Erm... I suppose sixty, sixty-five, I, I don't really know. Or is it possible to have it earlier than that?
I: Yes, indeed, you can take any sort of saving scheme, erm, over a period of years, ranging from ten upwards. A life insurance is absolutely no good for short-term savings. When I say short-term, I mean any period up to ten years. [Yes] If you're interested in saving, say for two or three years then, in fact, you want to use something like a Bank or a Buildig Society. Erm [Oh,I see]... Life Insurance works more as a system of saving over long term...ten plus years... [Yes]... erm...because it is regular and it is systematic.
B Now try this: listen to a more authentic version of the dialogue. Answer the questions with key words.
Part Ⅳ More about the topic: Should I Buy an Insurance Policy? (Ⅱ)
A Listen to the dialogue. Write down the key points. Then complete the paragraph and answer the question with key words.
J — Mr. Jackson I — Insurance salesman
J: Erm. From your experience, can you say what, what age it is that people normally ... like to have a, a lump sum?
J: Fifty or something like that?
I: Varies entirely according to their needs, I mean, if you take someone in er, a self-employed position, say a shop-keeper ... [Yes] Erm ...
J: He would want to develop his business, perhaps, at a certain (time).
I: Yes, I mean he, he, he may, he may well have two needs. One, he may be ... he will want to accumulate money over a fairly short term, say fifteen years, [Mm] so that at the end of fifteen years he has the capital, and by that stage, he will have the experience from working in a business to expand it, [Yes] Alternatively, his second need may be something in (th) need of... a pension. [Yes] He, unlike employees, hasn't got a compulsory pension scheme, and he may want a system of saving which is going to produce for him a pension when he feels he would like to retire.
J: Yes. So, er, I suppose in my case, I'm not, not self-employed, perhaps it might be something like … er … the needs of the children at a certain age. I mean, children who are coming into adolescence, for example…
I: Yes. Mm…
J: They, they have a lot of needs then. Clothing, perhaps education, er, [Yes. Ind ...] this sort of thing.
I: Indeed. When you get married you will find that, you know, a number of needs come up to do with life insurance, erm, on what we call the life cover side. [Yes] Erm, in other words, the amount ... that ... your wife and children would receive from an insurance company in the event of your dying. [Yes] But, at the moment, as a single man, you have no need for this type of policy, you see; and any ... savings scheme ...
B Now try this: listen to a more authentic version of the dialogue.
Part Ⅴ Do you know ...?
Listen to the conversation. Decide whether the statements are true or false. Put "T" or "F" in the brackets.
A: How do prices in Iceland compare with those in the UK? I've heard that it's an expensive country.
B: Yes, it always has been, but at the moment the pound is quite strong against the krona, so things like eating out in restaurant and staying in hotels are cheaper than they used to be. But eating out is still quite expensive, and drinks cost about twice as much as they do in the UK — a bottle of wine in a restaurant is extremely expensive. But I don't mind paying the prices — the fish is fantastic as you would expect and the lamb is wonderful. Food in the shops is still expensive, probably on average about one and half times more expensive than in the UK.
A: Do you manage to get out much, or do you spend all of your time working when you're there?
B: I try to get out and see as much of the country as possible, yes. I like to go fishing when I have the chance — Iceland is a great place for fishing. Last time I was there I did actually manage to find time to drive up to the fishing port at Akrances, I'm not sure how you pronounce it, from Reykjavik. I went out on a boat and caught quite a lot of fish, for once — mainly cod and haddock. To get to Akrances you have to drive past some fantastic mountain scenery. You really should go to Iceland if you have the chance. I don't know anywhere else like it. |