Event Name Here 12/02/2007 Introduce yourself, tell the class where you are from, ask the class if they have heard of HMRC or Her Majesties Revenue and Customs. Next slide Project Name: HMRC v1.8

https://youtu.be/C3 VwZ-Cmac Event Name Here 12/02/2007 What is tax? https://youtu.be/C3 VwZ-Cmac Ask the class if they know what tax is, explain that you are here to explain to them what tax is and what it is used for but first there is a video to watch – YouTube link Project Name: HMRC v1.8

Who pays tax? Event Name Here 12/02/2007 Ask the children who pays tax. Project Name: HMRC v1.8

Event Name Here 12/02/2007 - People, when they work and earn money - Businesses, such as shops and banks - You, when you buy things that have tax included in the price Read out the following Project Name: HMRC v1.8

CAN YOU THINK OF A TAX YOU WILL HAVE PAID THIS WEEK? Event Name Here 12/02/2007 CAN YOU THINK OF A TAX YOU WILL HAVE PAID THIS WEEK? Some examples of things children will have paid tax on – hair accessories, magazines, toys, games, video games, sweets, chocolates Project Name: HMRC v1.8

One strange exception is cakes which you do not pay VAT on. Event Name Here 12/02/2007 The reason why you don’t pay tax on cakes and biscuits is they are classed as ‘essential items’ Fun fact – Gingerbread figures are VAT free if they only have a decorated face (eyes mouth) any extra decorations such as buttons down the front etc. and it becomes Vatable and tax must be paid. VALUE ADDED TAX - VAT TAX is added to the sale of sweets and chocolates because they are not healthy, full of sugar and considered a luxury item. One strange exception is cakes which you do not pay VAT on. Project Name: HMRC v1.8

QUESTION? On which of these do you not pay VAT and do you know why? JAFFA CAKES CHOCOLATE COVERED BISCUITS

ANSWER What do you think? Cake or Biscuit? Event Name Here 12/02/2007 ANSWER The correct answer is Jaffa Cakes VAT is added to the sale of chocolate covered biscuits but not to the sale of Jaffa Cakes. The tax man argued that Jaffa cakes are chocolate covered biscuits McVities who make Jaffa Cakes disagreed and the argument had to be settled in court It was eventually decided that Jaffa Cakes were more Cake than Biscuit and therefore no VAT should be charged One of the deciding points was that cakes go hard when they are stale but biscuits go soft The court case went to high court and the judge was given a stale jaffa cake and a stale choc biscuits and told to squeeze them proving that one went hard and the other went soft. What do you think? Cake or Biscuit? Project Name: HMRC v1.8

What do taxes pay for?

Important things in our cities, towns and villages

Health - doctor - nurses - hospitals - medicine Event Name Here 12/02/2007 Health - doctor - nurses - hospitals - medicine 11 Project Name: HMRC v1.8

Education - schools - teachers - books - equipment Event Name Here 12/02/2007 Education - schools - teachers - books - equipment 12 Project Name: HMRC v1.8

Emergency services - police - fire brigade - ambulances Event Name Here 12/02/2007 Emergency services - police - fire brigade - ambulances 13 Project Name: HMRC v1.8

Armed services - British Army - Royal Navy - Royal Air Force Event Name Here 12/02/2007 Armed services - British Army - Royal Navy - Royal Air Force 14 Project Name: HMRC v1.8

- Roads - Street lights - Libraries - Museums and art galleries - Parks - Protecting the countryside

In your groups discuss what parts of town are run using money from taxes and which are businesses

This shows some of the important things that taxes pay for Hospital Museum Police Fire Station School Roads Protecting the Countryside This shows some of the important things that taxes pay for

These are businesses, they charge you money for their services Gym Supermarket Cafe Cinema Shops Garage These are businesses, they charge you money for their services

Chancellor for the Day The Chancellor of the Exchequer is a member of government who is responsible for deciding tax levels and how much money the government can spend The Official residence of the Chancellor since 1828 is No. 11 Downing Street The Chancellor carries his Budget Speech in a Red Briefcase The current Chancellor of the Exchequer is Philip Hammond

Imagine that you are the Chancellor of the Exchequer In your groups decide which you think is the most important from top to bottom of these 6 areas above give a reason for your answers

This Pie Chart shows how the Chancellor spent his budget in 2016/17 Event Name Here This Pie Chart shows how the Chancellor spent his budget in 2016/17 12/02/2007 Pensions is the biggest outlay of tax money. Ask the children if they know what pensions are, explain that when you reach a certain age you qualify for a pension that gives you the chance to retire from work, the pension money is given to you instead of a wage. 20% is a large amount of money but because of great healthcare in the UK there are over 9 million pensioners in the UK, that is more than 1 in 6 people. 1. Health - 16% 2. Education - 11% 3. Defence - 6% 5. Environment - 1% 6. Museums - 0.25% Project Name: HMRC v1.8

What have we learned? Why do we have taxes? Who pays taxes? Event Name Here 12/02/2007 What have we learned? Why do we have taxes? Who pays taxes? How does the government spend the money that comes from taxes? Ask the students what they have learned, do they think tax is a good thing? Project Name: HMRC v1.8

Discuss in teams and decide how much EXERCISE 3 YOUR FIRST JOB You have started your first job you have just received your first wage of £100 How much of your pay DO YOU think should be given back to the government in tax? Discuss in teams and decide how much

EXERCISE 3 YOUR FIRST JOB The amount that you pay in tax on £100 is £20 which is 20% of your earnings You only start paying tax on your wages after you have earned £11,500 in any one year When your wages reach £45,000 you start to pay 40% tax this is called ‘higher rate’ The most tax you pay in the UK is 45% but this is only after you have earned over £150,000 this is called ‘additional rate’

WHAT IMPACT DO YOU THINK IT HAD ON PEOPLE WHO WERE ALIVE AT THE TIME? EXERCISE 4 WINDOW TAX Window tax was a tax that had to be paid by people in England, Scotland and Wales in the 18th and 19th Centuries People had to pay tax on each window they had in their homes Window tax no longer exists The tax was very unpopular and some people called it “a tax on light and air” WHAT IMPACT DO YOU THINK IT HAD ON PEOPLE WHO WERE ALIVE AT THE TIME?

Event Name Here 12/02/2007 EXERCISE 4 WINDOW TAX Some people bricked up their windows to avoid paying the tax New houses were built with less windows Less windows created dark, damp rooms which made people ill through disease Because there were less windows glass factories started closing and people lost their jobs The students may have seen a building like the one in the picture in the city centre, there are still similar one by the cathedrals. Project Name: HMRC v1.8

SILLY TAXES AND FUN FACTS Hats were taxed in Britain from 1794-1811 Tax on playing cards in 16th Century England was 2 shillings and 6 pence which is about £25 today this was more than a months wage for most people Peter the Great of Russia put a tax on beards to make Russia more modern (also he was jealous because he couldn’t grow a beard, he was only 10 when he became Tsar) In ancient Rome urine was used to tan leather and clean clothes. Emperor Nero decided to cash in by taxing the urine collectors

Thank you for listening Event Name Here 12/02/2007 Thank you for listening 28 Project Name: HMRC v1.8