Taxation
Lesson details
Learning outcome
I can calculate tax.
Key learning points
- Income tax is paid on any money earnt after your personal tax allowance
- National insurance is also only paid if you earn more than a certain amount
- Tax is paid on luxury goods. This is referred to as VAT.
Keywords
Income Tax - Income Tax is tax that you pay on your income.
National Insurance - National Insurance is a tax on income which qualifies you to certain benefits, such as the State Pension and maternity pay.
Value Added Tax (VAT) - Value Added Tax (VAT) is a tax that is added to most products and services sold by businesses.
Common misconception
Income Tax is paid on the entire salary.
Income Tax is only applied to the amount earned above the personal allowance.
Teacher tip
Pupils may enjoy investigating the different rates of Sales Tax in different states in the United States. They could create a presentation showing where it is cheapest to buy certain items.
Content guidance
Depiction or discussion of sensitive content
Supervision
Adult supervision recommended
Licence
Lesson video
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Prior knowledge starter quiz
6 Questions
Q1.Calculate 20% of 72
Q2.If you have 40 apples and 35% of them are eaten, how many do you have left?
Q3.A top originally cost £22. It is now on sale for £14. What is the percentage decrease in price (to the nearest percent)?
Q4.A store owner buys a pair of shoes for £45 and sells them for £105. What is the percentage profit (to the nearest percent)?
Q5.A house originally valued at £399 999 increase in price by 8.75%. What is its new value (to the nearest pound)?
Q6.An item that originally cost £37 is discounted by 18%. What is the sale price?
Assessment exit quiz
6 Questions
Q1. Tax is tax that you pay on your income.
Q2. is a tax on income which qualifies you to certain benefits, such as the State Pension and maternity pay.
Q3. (VAT) is a tax that is added to most products and services sold by businesses.
Q4.The amount of money you can earn without having to pay Income Tax is called your ...
Q5.A store in the USA has a pair of sneakers on display. The price tag reads $41.99 and the Sales Tax is 15%. What do the sneakers cost?
Q6.A shop in the UK has a pair of trainers on display. The price tag reads £45.99 and VAT is 20%. What do the trainers cost?
To help you plan your 8 financial education lesson on: Taxation, download all teaching resources for free and adapt to suit your pupils' needs...
To help you plan your 8 financial education lesson on: Taxation, 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 3 financial education lessons from the Tax, insurance and inflation unit, dive into the full secondary financial education curriculum, or learn more about lesson planning.