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New
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Year 10

Can taxes be avoided?

I can explain how tax avoidance affects the UK economy and why paying tax is everyone’s responsibility.

icon-background-square
New
New
Year 10

Can taxes be avoided?

I can explain how tax avoidance affects the UK economy and why paying tax is everyone’s responsibility.

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Lesson details

Key learning points

  1. Taxation funds essential public services, ensuring universal access to healthcare, education and infrastructure.
  2. Tax avoidance, though legal, reduces government revenue, whereas tax evasion is illegal and punishable by law.
  3. Taxation upholds social equity by ensuring proportional contributions based on income levels.
  4. Tax-free economies often rely on high consumption taxes or privatised services, increasing financial barriers to access.
  5. Without taxation, public services would become market-dependent, exacerbating social and economic inequalities.

Keywords

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

  • Tax avoidance - legal methods of avoiding paying as much tax as possible

  • Tax evasion - illegal methods of avoiding paying tax, punishable with fines or imprisonment

Common misconception

All governments charge their citizens Income Tax.

There are many countries that do not pay Income Tax at all; their governments get their income elsewhere like from VAT or natural resources.


To help you plan your year 10 citizenship lesson on: Can taxes be avoided?, download all teaching resources for free and adapt to suit your pupils' needs...

You could facilitate a deliberative discussion about whether we should pay Income Tax or whether the Government should get its money from other sources. Alternatively, discuss the fairness of the progressive tax system or if taxes could be avoided altogether.
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Content guidance

  • Depiction or discussion of discriminatory behaviour
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Supervision

Adult supervision recommended

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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

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6 Questions

Q1.
Income Tax is applied at what percentage rate for earnings above £12,571, but below £50,270?
10%
Correct answer: 20%
30%
40%
Q2.
A payslip includes pay information and also includes Income Tax and Insurance.
Correct Answer: National
Q3.
Which service is not funded by Income Tax?
the NHS
Correct answer: pension
education
defence and security
Q4.
Match the weekly taxable income for National Insurance to the tax percentage.
Correct Answer:0%,£123 to £242
tick

£123 to £242

Correct Answer:8%,£242.01 to £967
tick

£242.01 to £967

Correct Answer:2%,over £967
tick

over £967

Q5.
Which best describes a progressive tax system?
Everyone pays the same percentage of tax regardless of income.
Correct answer: People with higher incomes pay a higher percentage of tax.
Only the wealthy are taxed.
Tax rates decrease as income increases.
Q6.
All are taken from your salary before you are paid.
earnings
Correct answer: deductions
taxes

6 Questions

Q1.
Match the words to the correct definition.
Correct Answer:tax,charges imposed by the Government on citizens and businesses
tick

charges imposed by the Government on citizens and businesses

Correct Answer:tax avoidance,legal methods of avoiding paying as much tax as possible
tick

legal methods of avoiding paying as much tax as possible

Correct Answer:tax evasion,illegal, punishable methods of avoiding paying tax
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illegal, punishable methods of avoiding paying tax

Q2.
Which is not an essential public service that is funded through taxation?
infrastructure
healthcare
education
Correct answer: restaurants
Q3.
Match the legislation with its purpose.
Correct Answer:Finance Act (2024),extended prison sentence for tax evasion
tick

extended prison sentence for tax evasion

Correct Answer:General Anti-Abuse Rule (2013),stopped people from using artificial ways to avoid tax
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stopped people from using artificial ways to avoid tax

Correct Answer:Tax Avoidance Schemes Regulation (2021),introduced computer programs to analyse tax returns
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introduced computer programs to analyse tax returns

Q4.
Paying taxes is not only a legal obligation, but a duty.
Correct Answer: civic
Q5.
Which two examples are an alternative method for countries who don't collect Income Tax to generate income?
Correct answer: increasing tourism
printing more money
increasing National Insurance
Correct answer: selling natural resources
Q6.
Taxation is a way of ensuring that society as a whole takes care of its most __________ members.
valuable
virtuous
Correct answer: vulnerable