icon-background-square
New
New
Year 11

Work, income and deductions

I can estimate and calculate take home pay for different occupations and for people in different circumstances.

icon-background-square
New
New
Year 11

Work, income and deductions

I can estimate and calculate take home pay for different occupations and for people in different circumstances.

warning

These resources will be removed by end of Summer Term 2025.

Switch to our new teaching resources now - designed by teachers and leading subject experts, and tested in classrooms.

Lesson details

Key learning points

  1. There is a difference between gross and net pay.
  2. People in different circumstances will have different levels of deductions/allowances.
  3. Payslips should be checked to ensure deductions are correct.

Keywords

  • Gross pay - Your gross pay is your total income before any deductions are made.

  • Net pay - Your net pay is the amount of income that you receive after deductions have been made.

Common misconception

Gross pay is all the money that you make and get to keep.

Gross pay is your total income but it is not always what you receive. If you earn enough, you will need to pay tax and NI which is deducted from your gross pay.


To help you plan your year 11 financial education lesson on: Work, income and deductions, download all teaching resources for free and adapt to suit your pupils' needs...

Pupils could use spreadsheet software so that they can quickly calculate new pay from various incomes.
speech-bubble
Teacher tip
equipment-required

Equipment

content-guidance

Content guidance

  • Depiction or discussion of sensitive content
supervision-level

Supervision

Adult supervision recommended

copyright

Licence

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

Loading...

6 Questions

Q1.
Tax is tax that you pay on your income.
Correct Answer: Income
Q2.
National is a tax on income which qualifies you to certain benefits, such as the State Pension and maternity pay.
Correct Answer: Insurance
Q3.
Tax (VAT) is a tax that is added to most products and services sold by businesses.
Correct Answer: Value Added
Q4.
The amount of money you can earn without having to pay Income Tax is called your ...
additional rate
basic rate
higher rate
Correct answer: personal allowance
Q5.
A store in the USA has a pair of sneakers on display. The price tag reads $31.99 and the Sales Tax is 15%. What do the sneakers cost?
Correct Answer: $36.79
Q6.
A shop in the UK has a pair of trainers on display. The price tag reads £55.99 and VAT is 20%. What do the trainers cost?
Correct Answer: £55.99

6 Questions

Q1.
An employee works 168 hours in a month and is paid £23.50 per hour. What is their gross pay?
Correct Answer: £3948
Q2.
An employee works 152 hours in a month and is paid £29.50 per hour. What is their gross pay?
Correct Answer: £4484
Q3.
An employee works 168 hours in a month and is paid £23.50 per hour. Their pension contribution is 5% of their gross pay. Calculate their pension contribution for this month.
Correct Answer: £197.40
Q4.
An employee works 152 hours in a month and is paid £29.50 per hour. Their pension contribution is 6% of their gross pay. Calculate their pension contribution for this month.
Correct Answer: £269.04
Q5.
One month, an employee is left with a taxable income of £3750. The first £1048 earned is tax-free and then up to the next £3141 is taxed at 8%. How much of the taxable income is taxed at 8%?
Correct Answer: £2702
Q6.
One month, an employee is left with a taxable income of £3750. The first £1048 earned is tax-free and then up to the next £3141 is taxed at 20%. How much tax is owed?
Correct Answer: 540.40