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KS3 · Year 7 / Year 8 · Lesson plan

What is income tax — and why we pay it

A classroom-ready 50 minutes lesson plan with starter, main, plenary, differentiation, SEND adaptations, EAL support and assessment criteria. Free to use, no login.

Key Stage
KS3
Year group
Year 7 / Year 8
Age range
11–13
Duration
50 minutes
Subject
Maths / PSHE / Citizenship
Cost
Free

Learning aim

Pupils can explain what income tax is, why government collects it, and how the UK's band system means people on different incomes pay different rates.

CURRICULUM National Curriculum links

RESOURCES What you'll need

LESSON Lesson structure (50 minutes)

Opening
HOOK
Hold up (or project) pictures of a hospital, a school, a road, a fire engine, and a library. Ask: "What pays for all of these things?" Take 3 answers. Land on: most are paid for by tax. We collectively pay, and government collectively spends on services we all use.
Direct teach
TEACH
Define income tax as "the slice of your earnings that goes to the government to pay for public services." Show the UK 2026/27 bands on the board: £0-£12,570 = 0% (Personal Allowance), £12,571-£50,270 = 20% (basic rate), £50,271-£125,140 = 40% (higher rate), £125,141+ = 45% (additional rate). Stress: each band is a SLICE, not a cliff. Earning £60,000 doesn't mean you pay 40% on all of it — only on the slice between £50,270 and £60,000.
Pupils apply
GUIDED
Work through a calculation on the board: "If you earn £20,000, what tax do you pay?" Step by step: first £12,570 = £0 tax (Personal Allowance covers it). Remaining £7,430 × 20% = £1,486. Total tax: £1,486. Pupils then calculate three more in pairs: £15,000, £25,000, £35,000. Share answers; check the working. Discuss: why is £15,000 cheaper proportionally than £35,000?
Stretch / depth
CHALLENGE
Display this real claim: "Your friend says they don't want a pay rise because it will 'push them into a higher tax band' and they'll lose money overall." Pupils discuss in pairs: is this right? Build the correction: only the slice above the higher threshold is taxed at the higher rate. A pay rise (almost) always increases take-home pay. The myth is widespread but wrong. Then introduce the technical word: "marginal rate" = the rate on the NEXT pound you earn.
Close
PLENARY
Each pupil writes two things on their mini-whiteboard: "Income tax pays for ___" (one example) and "If I earn £40,000, my marginal rate is ___%." Share three pupils' answers. Final reflection: "Why might a country have higher tax rates for higher incomes?"

DIFFERENTIATION Adapting for all learners

Support (working below ARE)

Calculate tax on simple incomes only (£15k, £20k, £25k). Provide a tax-band table on a sheet. Calculator allowed. Focus on understanding what each band means rather than fast calculation.

Stretch (working above ARE)

Calculate tax on £55,000 and £130,000 (crossing into higher and then additional rate). Pupils explain in writing why a country might use a "progressive" tax system. Stretch question: "What would happen if everyone paid the same flat rate?"

SEND SEND adaptations

For pupils with dyscalculia: pre-fill the band calculation template so pupils only do the final percentage step. For pupils with autism: provide a clear flowchart "is your income below £12,570? If yes → £0 tax. If no → calculate tax on the slice above £12,570 at 20%."

EAL EAL support

Vocabulary: "income tax", "Personal Allowance", "band", "rate", "marginal", "progressive". Sentence frames: "If you earn £___, you pay £___ in tax." "The first £12,570 you earn is ___ because of the Personal Allowance."

ASSESSMENT Assessment criteria

Pupils can: (1) define income tax in one sentence; (2) name the four UK Income Tax bands and rates; (3) calculate the income tax on a £25,000 income; (4) explain in their own words why earning more never reduces overall take-home pay.

HOME Homework pack

Four activities to consolidate UK income tax mechanics. ~30 minutes.

Band calculation

What pupils do: For each gross salary, calculate the UK income tax (England/Wales/NI 2026/27 rates): (a) £15,000, (b) £30,000, (c) £55,000, (d) £85,000. Show the band split for each.

Expected output: 4 calculations with band-by-band working.

Marking guidance: 2 marks per accurate total (8 marks). Bonus 4 marks for correct band splits.

Personal Allowance research

What pupils do: What is the Personal Allowance? Why does it exist? Who loses it (the taper rule)?

Expected output: A 3-question short-answer response.

Marking guidance: 2 marks per accurate answer. 6 marks total.

Public spending

What pupils do: Find 5 different things UK income tax pays for. Order them by approximate share of government spending (biggest first).

Expected output: A ranked list of 5 spending categories.

Marking guidance: 1 mark per category, 1 mark per correct relative ranking. 8 marks total (e.g. NHS, pensions, education, defence, welfare).

Extension (optional)

What pupils do: Compare England, Scotland, and Wales income tax for someone earning £50,000. Which nation pays the most? Why?

Expected output: A 3-nation comparison table plus 2-sentence explanation.

Marking guidance: Up to 6 marks for accurate research and conclusion (Scotland pays more above ~£28k).

Family discussion prompt (safeguarding-aware)

Ask a working adult: "Name three things you think our tax money pays for." Compare their answers to what you learned in class.

SAFEGUARDING Classroom safeguarding

Note for teachers: Do not ask pupils about their own family's tax band, salary, or income. Frame all examples through fictional salaries. Be aware some pupils may be unsure of family financial circumstances — focus on the public-spending side of the lesson, not personal income.

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