Money quiz: UK Income Tax (easy)💷

Introduction 👋

Without question, teaching young people about finance is extremely important.

Studies from The London Institute of Banking and Finance have shown that:

• 82% of young people want to learn more about money and finance in school, but very few have regular access.
•  83% of young people aged 17-18 say that cost of living increases has made them feel more worried about money 
• Only 8% of young people cite school as their main source of financial education 
• 72% of young people say they hadn’t received any information about tax in school 

However, if you’re teaching, it’s difficult to find the time to do all the research, so you can teach it!

Save yourself time by using our free interactive money quiz to teach your learners about income tax!

The quiz:

• Starts with the basics 🪜
• Includes interesting money facts and statistics 🧠
• Explains income tax in a simple and entertaining way 🤹‍♀️

This quiz can be used to:

• check learners’ understanding of income tax 🧠
• introduce the topic of income tax 👋
• check learners’ familiarity with financial vocabulary ✅
• facilitate group discussions about money 💬

Disclaimer: This website provides information for guidance and educational purposes only. The Grown-Up School does not provide regulated financial advice. You can seek independent financial advice from a suitably qualified and regulated professional advisor. Check out our disclaimer policy for more information.

Lesson Objectives 🏆

By the end of this lesson, learners will:

• Understand the concept of income tax and its role in funding public services.
• Become familiar the UK’s income tax rates, ranges, and their implications.
• Gain a basic understanding of income tax procedures for both employment and self-employment including PAYE, self-assessment, and essential tax documents.

Learner Record Notes✍️

Once you’ve completed this quiz, you can add these notes to your records for your learners:

Today we completed an interactive quiz about income tax, where learners assessed their own understanding of income tax.

This activity supported the development of the following skills:

• Numeracy – learners developed their understanding of application of number, with quiz questions featuring percentages and financial values.
• Literacy – learners read quiz questions and answers, and were introduced to new vocabulary.
• Problem solving – learners used problem solving skills to decide between different quiz answers.
• Decision making – learners made decisions under time pressure, considering feedback from other participants.
• Working with others – learners chose answers in teams, negotiating with other participants.
• Communication skills – learners participated in group discussions about income tax.
• Digital literacy – learners completed the quiz online, using web links and participation codes. Where connection issues were experienced, learners worked to resolve them and connect to the quiz online.
• Improving own learning and performance – learners developed their confidence assessing their own understanding of a topic.

Kahoot Quiz 📱

Get the whole group playing, by completing these money quizzes as an interactive Kahoot quiz!

Just click the links below to get started.

Money quiz – UK income tax (easy) 🔥

Printable Quiz 🖨️

If Kahoot! isn’t your thing, here’s a printable version of the quiz!

Questions 🤔

Q1: What is tax?

1. Money that gets stolen from you
2. Money for your holidays
3. Money you pay to the government
4. Money you pay to your friends

Q2: When do you pay income tax?

1. When you earn money
2. When you buy things
3. When you own a dog
4. When you own a car

Q3: In the UK, which part of the government collects income tax?

1. National Health Service (NHS)
2. Royal Mail
3. Her Majesty’s Revenue and Customs (HMRC)
4. British Broadcasting Corporation (BBC)

Q4: What does income tax pay for?

1. Holidays
2. Sports cars for the government
3. Free schools and hospitals for people in the UK
4. Designer trainers

Q5: At what age do you start paying income tax?

1. 13
2. 16
3. 18
4. Any age

Q6: In the year 2022/23 how much money can you earn in the UK before you have to pay income tax?

1. £1,270
2. £12,570
3. £50,620
4. £112,570

Q7: In 2023, what percentage income tax do you pay on money you earn between £12,571 and £50,270? (Called basic rate)

1. 0%
2. 20%
3. 40%
4. 45%

Q8: In 2023, what percentage income tax do you pay on money you earn between £50,271 and £125,140? (Called higher rate)

1. 0%
2. 20%
3. 40%
4. 45%

Q9: In 2023, what percentage income tax do you pay on money you earn over £125,140? (Called additional rate)

1. 0%
2. 20%
3. 40%
4. 45%

Q10: In 2023 in the UK, what is the average amount of money earned each year by 18-21 year olds? (Before tax)

1. £10,888
2. £20,888
3. £30,888
4. £40,888

Q11: If you get a job, how do you usually pay your income tax?

1. Monthly bills from your account
2. Send money in the post
3. Credit card
4. Your employer does it for you

Q12: What is it called when your employer pays your income tax for you?

1. Pay-As-You-Count (PAYC)
2. Pay-As-You-Earn (PAYE)
3. Pay-As-You-Cry (PAYC)
4. Pay-As-You-Eat (PAYE)

Q13: How does your employer tell you how much tax they’ve sent to the government for you?

1. They don’t tell you
2. They give you a pat on the back
3. They give you a payslip
4. They steal your tax money

Q14: The government gives your employer a “tax code” to put on your payslip e.g. 1257L. What does this tell them?

1. How old you are
2. Where you live
3. How many friends you have
4. How much tax they need to pay for you

Q15: The government can sometimes get your tax code wrong and take too much money from your pay. What can you do to fix this?

1. Nothing
2. Tell off your employer
3. Throw your payslip in the bin and cry
4. Call HMRC and ask them to pay you back

Q16: When you quit your job, your employer will give you a document called a P45. What is this for?

1. To ignore it and lose it in your messy bedroom
2. To give to your new employer and show how much tax they’ve paid
3. To make you feel confused about taxes
4. To make you feel sad about quitting

Q17: How do you pay your income tax if you’re self-employed or run a business?

1. You don’t have to pay
2. Send by carrier pigeon
3. Fill in a form called a self-assessment
4. Fill in a form called a tax selfie

Q18: How often do you have to fill in a self-assessment tax return?

1. Every day
2. Every week
3. Every month
4. Every year

Q19: What can happen if you don’t pay the right amount of income tax?

1. Nothing
2. You could get a free holiday
3. You could get fined
4. You could get a puppy

Q20: When you pay your income tax, you have to pay based on what you earn between April to March instead of January to December.

What is the special name for the year running April to March?

1. The tax day
2. The tax month
3. The tax year
4. The tax haven

Q21: In 2023, how much money do you have to earn from a side hustle, before you need to pay income tax? (in profit!)

1. £100
2. £1,000
3. £5,000
4. £10,000

Q22: Why do you have to be really good at saving money if you’re self-employed/run a business?

1. Sports cars are expensive
2. To pay for fancy restaurants
3. To go on lots of holidays with all your free time
4. You have to remember to set money aside to pay taxes

Answers ✅

• Q1: Answer 3 – Tax is money you give to the government. It helps pay for things like schools and hospitals.
• Q2: Answer 1 – Income tax is what you pay when you earn money.
• Q3: Answer 3 – Her Majesty’s Revenue and Customs (HMRC) collects taxes for the government.
• Q4: Answer 3 – Income tax helps fund public services, like schools and hospitals.
• Q5: Answer 4 – Everyone, no matter their age, needs to pay income tax.
• Q6: Answer 2 – In 2022/23, you can earn £12,570 before having to pay income tax.
• Q7: Answer 2 – In 2023, about 20% of your earnings between £12,571 and £50,270 goes to income tax.
• Q8: Answer 3 – In 2023, around 40% of your earnings between £50,271 and £125,140 goes to income tax.
• Q9: Answer 4 – In 2023, from money you earn over £125,140, about 45% goes to income tax.
• Q10: Answer 1 – In 2023, the average yearly earnings for 18-21 year olds is about £10,888 before tax.
• Q11: Answer 4 – Your employer usually handles paying your income tax.
• Q12: Answer 2 – When your employer manages your income tax, it’s called Pay-As-You-Earn (PAYE).
• Q13: Answer 3 – Your employer shows how much tax they’ve paid for you on your payslip.
• Q14: Answer 4 – The “tax code” on your payslip helps your employer know the correct tax amount.
• Q15: Answer 4 – If your tax code is wrong and too much tax is taken, you can ask HMRC to refund you.
• Q16: Answer 2 – When you leave a job, your P45 helps your new employer understand your tax situation.
• Q17: Answer 3 – If you work for yourself or run a business, you need to complete a form to pay income tax.
• Q18: Answer 4 – If you’re self-employed, you need to do a tax return every year.
• Q19: Answer 3 – If you don’t pay the right tax amount, you could be fined.
• Q20: Answer 3 – The “tax year” runs from April to March.
• Q21: Answer 2 – In 2023, if you earn more than £1,000 from a side job, you might need to pay tax.
• Q22: Answer 4 – If you’re self-employed or run a business, you need to save money for taxes as they aren’t automatically deducted.

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