Lesson Plan

• Describe how different types of taxes affect disposable income.
• Calculate net income after a change in tax rate.
• Analyse the broader economic impacts of tax changes on consumer spending, saving and inequality.
• Evaluate the advantages and disadvantages of progressive tax policies.

• Projector and screen
• Whiteboard and markers
• Printed worksheet with tax tables
• Calculators
• PowerPoint slides covering key concepts
• Practice question handout
• Flow‑chart diagram of gross income → tax rate → tax paid → net income

Start with a hook: “Imagine your take‑home pay dropping after a tax hike.” Review prior knowledge that students understand gross versus net income. Explain that by the end of the lesson they will be able to compute net income and discuss the wider effects of tax changes.

1. Do‑now (5') – Quick mental maths: calculate tax on £1,000 at a given rate; share answers.
2. Mini‑lecture (10') – Define tax, outline key types, present the formula Net Income = Gross Income – Tax Paid using slides.
3. Guided example (10') – Work through the £30,000 salary scenario; students fill in the table.
4. Group activity (15') – New scenario calculations; discuss impacts on spending and saving; record findings on worksheet.
5. Class discussion (10') – Summarise broader effects, positive outcomes, and link to income inequality.
6. Practice questions (10') – Individual work on three supplied questions; teacher circulates for support.
7. Exit ticket (5') – Write one way a tax increase could affect a small business owner.

Recap the key formula and the main economic consequences of tax changes. Collect exit tickets to gauge understanding, and assign homework: write a short reflection on how tax policy could be used to fund a community project.