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Year 10 - Citizenship

How much of our pay goes to the Government?

What has the UK economy got to do with me?

Unit Summary

This unit develops pupils' knowledge and understanding of the UK economy and helps them appreciate its relevance to them.

Lesson Summary

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

Key Notes

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

Vocabulary To Learn

  • 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 Mistakes To Avoid

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

3 Quick Questions (With Answers)

1. Explain the lesson in two key points.

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

2. What does this key word mean in this lesson? 'tax'

the charges imposed by the Government on citizens and corporations to finance some of its spending.

3. Correct this common mistake.

Mistake: Everyone pays the same rate of tax regardless of their salary. Correction: The UK operates a progressive taxation system so people pay more if they earn more, according to the Government's band system.

More Lessons In This Unit

Browse all guides in the Year 10 Citizenship guide library.