Understanding Tax: A Visit from HMRC

Year 5 and Year 6 had a fascinating visit this week from two members of staff from HMRC, who taught us all about tax — what it is, why we pay it  and how the money is used to support our country.
We began by looking at the incredible amount of tax collected each year: £600 billion, which looks like this: £600,000,000,000. The children were amazed to see just how big that number really is!
We then explored the question: “Is it fair to pay tax?” After some thoughtful discussion, all of the children agreed that it is. We learned that tax is added to certain products, such as sweets and chocolate, because of the sugar tax. Interestingly, cakes are not taxed in the same way because, historically, they were considered part of the staple diet. This helped us answer the age-old debate: Is a Jaffa Cake a cake or a biscuit? Since no tax is added, we discovered that Jaffa Cakes are officially classed as cakes!
The children were surprised to learn just how many important services are funded through the taxes people pay, including education, healthcare, emergency services, the armed forces, libraries, museums, road maintenance, refuse collection and more.
Next, we were challenged to become “Chancellor for the Day.” The children had to come up with a brand-new tax they would introduce. Their ideas were impressive and very thoughtful, including:

• a tax on bus and train companies if they do not provide seatbelts
• an increased tax on cigarettes and vapes
• a tax on littering
• a tax on excessive use of YouTube and Xbox
• a tax on chewing gum

Our following activity was to prioritise the top six areas where collected tax should be spent: healthcare, museums, protecting the countryside, police, the armed forces, and education. This sparked excellent discussions as the class considered which services should receive the most funding and why.
The final challenge asked the children to decide what level of tax is fair. Suggestions ranged from 50% to 75%, but once we explored how much money that would leave for personal spending, the children began to rethink their choices!
All in all, it was a wonderfully informative session that gave the children an early insight into tax, public services, and how our country is funded. A huge thank-you to the HMRC team for such an engaging and thought-provoking workshop!