Choose exam board for KS4 Computer Science (GCSE)
Choose exam board for KS4 English
Choose exam board for KS4 French
Choose exam board for KS4 Geography
Choose exam board for KS4 German
Choose exam board for KS4 History
Choose tier for KS4 Maths
Choose exam board for KS4 Music
Choose exam board for KS4 Physical education (GCSE)
Choose exam board for KS4 Religious education (GCSE)
Choose exam board for KS4 Spanish

How much of our pay goes to the Government?

Lesson details

Learning outcome

I can explain what information can be found on a payslip and how much of our pay goes to the Government.

Key learning points

  1. A portion of our earnings is deducted by the Government for taxes like Income Tax and National Insurance.
  2. The amount of government deductions is shown to us on our payslip. This will show other deducations too such as pension.
  3. Income Tax is a progressive tax whereas National Insurance is a regressive tax.

Keywords

  • Tax - the charges imposed by the Government on citizens and corporations to finance some of its spending

  • Income Tax - a compulsory tax on earnings from employment collected by the Government to fund public services

  • National Insurance - contributions paid from money earned to enable individuals to qualify for certain benefits and the State Pension

Common misconception

Everyone pays the same rate of tax regardless of their salary.

The UK operates a progressive taxation system so people pay more if they earn more, according to the Government's band system.

Teacher tip

Using some examples of payslips from people on a range of salaries who qualify for different tax bands, do some group work analysing how much pay the Government took. For example, have pupils match the tax band with the payslip.

Content guidance

Depiction or discussion of sensitive content

Supervision

Adult supervision recommended

Licence

This content is © Oak National Academy Limited (2025), licensed on Open Government Licence version 3.0
except where otherwise stated. See Oak's terms & conditions
(Collection 2).

Lesson video

Loading...

Prior knowledge starter quiz

6 Questions

Q1.
Fill in blank: Financial involves making informed decisions about budgeting, saving and avoiding debt.

Correct Answer: responsibility

Q2.
What is the purpose of a savings account?

to spend money quickly
Correct answer: to store money for future use
to pay off credit card bills

Q3.
What is a budget?

a list of all the things you want to buy
a type of bank account
Correct answer: a plan for spending money

Q4.
Fill in the blank: A debit card allows you to spend directly from your bank account, while a card lets you repay money later.

Correct answer: credit
business
loyalty
prepaid

Q5.
Match the word to the correct definition.

Correct Answer:ethical,doing what is morally right, fair and good

doing what is morally right, fair and good

Correct Answer:borrow,taking money from a lender with the intention of paying it back

taking money from a lender with the intention of paying it back

Correct Answer:overdraft,when you spend more money than you have from your bank account

when you spend more money than you have from your bank account

Correct Answer:invest,putting money into something with the aim of making a profit

putting money into something with the aim of making a profit

Q6.
Fill in the blank: is deception for financial gain, often through scams that steal money or personal information.

Correct Answer: fraud

6 Questions

Q1.
Match each word to its correct definition.

Correct Answer:Income Tax,charges on employment earnings collected for public services

charges on employment earnings collected for public services

Correct Answer:tax,charges imposed by the Government on citizens and corporations

charges imposed by the Government on citizens and corporations

Correct Answer:National Insurance,contributions paid for people to qualify for certain benefits

contributions paid for people to qualify for certain benefits

Q2.
Fill in the blank: All deductions, such as taxes, are taken from your before you are paid.

Correct Answer: salary, pay

Q3.
Which is not included on a payslip aside?

gross pay
net pay
Correct answer: partial pay

Q4.
National Insurance is calculated on earning above what amount?

£5,520
Correct answer: £12,570
£35,620
£50,270

Q5.
Fill in the blank: A is a long-term savings plan that provides you with an income after you retire.

Correct Answer: pension

Q6.
What kind of taxation system does the UK operate, according to the Government's band system?

aggregated
Correct answer: progressive
universal

To help you plan your 10 citizenship lesson on: How much of our pay goes to the Government?, download all teaching resources for free and adapt to suit your pupils' needs...