Can taxes be avoided?
Lesson details
Learning outcome
I can explain how tax avoidance affects the UK economy and why paying tax is everyone’s responsibility.
Key learning points
- Taxation funds essential public services, ensuring universal access to healthcare, education and infrastructure.
- Tax avoidance, though legal, reduces government revenue, whereas tax evasion is illegal and punishable by law.
- Taxation upholds social equity by ensuring proportional contributions based on income levels.
- Tax-free economies often rely on high consumption taxes or privatised services, increasing financial barriers to access.
- Without taxation, public services would become market-dependent, exacerbating social and economic inequalities.
Keywords
Tax - the charges imposed by the Government on citizens and corporations to finance some of its spending
Tax avoidance - legal methods of avoiding paying as much tax as possible
Tax evasion - illegal methods of avoiding paying tax, punishable with fines or imprisonment
Common misconception
All governments charge their citizens Income Tax.
There are many countries that do not pay Income Tax at all; their governments get their income elsewhere like from VAT or natural resources.
Teacher tip
You could facilitate a deliberative discussion about whether we should pay Income Tax or whether the Government should get its money from other sources. Alternatively, discuss the fairness of the progressive tax system or if taxes could be avoided altogether.
Content guidance
Depiction or discussion of discriminatory behaviour
Depiction or discussion of sensitive content
Supervision
Adult supervision recommended
Licence
Lesson video
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Prior knowledge starter quiz
6 Questions
Q1.Income Tax is applied at what percentage rate for earnings above £12,571, but below £50,270?
Q2.A payslip includes pay information and also includes Income Tax and Insurance.
Q3.Which service is not funded by Income Tax?
Q4.Match the weekly taxable income for National Insurance to the tax percentage.
£123 to £242
£242.01 to £967
over £967
Q5.Which best describes a progressive tax system?
Q6.All are taken from your salary before you are paid.
Assessment exit quiz
6 Questions
Q1.Match the words to the correct definition.
charges imposed by the Government on citizens and businesses
legal methods of avoiding paying as much tax as possible
illegal, punishable methods of avoiding paying tax
Q2.Which is not an essential public service that is funded through taxation?
Q3.Match the legislation with its purpose.
extended prison sentence for tax evasion
stopped people from using artificial ways to avoid tax
introduced computer programs to analyse tax returns
Q4.Paying taxes is not only a legal obligation, but a duty.
Q5.Which two examples are an alternative method for countries who don't collect Income Tax to generate income?
Q6.Taxation is a way of ensuring that society as a whole takes care of its most __________ members.
To help you plan your 10 citizenship lesson on: Can taxes be avoided?, download all teaching resources for free and adapt to suit your pupils' needs...
To help you plan your 10 citizenship lesson on: Can taxes be avoided?, download all teaching resources for free and adapt to suit your pupils' needs.
The starter quiz will activate and check your pupils' prior knowledge, with versions available both with and without answers in PDF format.
We use learning cycles to break down learning into key concepts or ideas linked to the learning outcome. Each learning cycle features explanations with checks for understanding and practice tasks with feedback. All of this is found in our slide decks, ready for you to download and edit. The practice tasks are also available as printable worksheets and some lessons have additional materials with extra material you might need for teaching the lesson.
The assessment exit quiz will test your pupils' understanding of the key learning points.
Our video is a tool for planning, showing how other teachers might teach the lesson, offering helpful tips, modelled explanations and inspiration for your own delivery in the classroom. Plus, you can set it as homework or revision for pupils and keep their learning on track by sharing an online pupil version of this lesson.
Explore more key stage 4 citizenship lessons from the What has the UK economy got to do with me? unit, dive into the full secondary citizenship curriculum, or learn more about lesson planning.