2. that taxes are deducted from our earnings to provide for things that we all need in our wider and global communities about how the money from tax might be spent to benefit everyone

3. What do you know about tax? Who pays tax? Do you pay tax? What is tax used for?

4. Who pays taxes If we are working then we pay tax on the money we earn We will pay tax on many of the goods and services we buy, this tax is called VAT (Value Added Tax) We also pay tax on other things such as using a TV, running a car, the home we live in The tax from the money we earn is kept by the government so they can provide the vital services that we all need

5. Do you pay tax? If you buy things such as sweets and chocolate or toys then the price you pay includes an element of VAT which will go to the government. So YES, you do pay tax!

6. Income tax Income tax is deducted from the money we earn The amount of tax we pay is a % of how much we earn, so the more we earn the more tax we will pay The first £11,000* we earn is ‘tax free’, so we then pay tax on the rest of our earnings We also pay National Insurance (NI) which is an additional tax on our income *2016/17 tax allowance

7. Government income from taxes

8. Government spending

9. Paying our taxes Why is it important that we pay our taxes? What would life be like if no-one paid their taxes? As citizens we have a duty to make sure we pay our taxes because this money is used by the government to provide services that we all need, and to support those less fortunate or who need extra help

10. If we were the government...  Rank the services in order of importance  Which would you spend more on, or less on?  Would you increase taxes and if so how – on income tax, VAT or car tax or would you introduce a new tax? Imagine you are the government and in charge of how much tax people pay and how it is used…  Decide in your group what you will do and prepare your speech to tell people. You can make up to six changes

11. Taxes

12. that deductions are made from the money we earn the reason why people have to pay taxes that we have a duty to pay our taxes in order to support our wider community