Video transcript

Have you ever thought about what your dream job would be? Are you excited about earning your own money? Well, did you know that some of your money won’t make it into your bank account? Instead, this will be taken out as tax.

Sometimes the money supports other people in the local community instead. This could be…

1. People who have retired which means they've stopped working, usually after reaching a certain age. They receive this money as a pension, usually after reaching a certain age. They receive this money as a pension.
2. People who aren't working and need support finding a new job.

This money is taken from our salaries as National Insurance. A special type of tax for anyone who earns over a certain amount each month.

Tax is money that is taken by the government to pay for lots of important things. People have been taxed for hundreds of years. Between the 1700’s to the 1800’s there was even a tax for wallpaper, newspaper and tea! Now… if someone gets paid more than a certain amount per year, they need to pay tax on their earnings. This is a percentage of their salary. Where does this money go? Tax pays for important services in our local communities. Such as…

1. Libraries and leisure centre
2. Parks and schools
3. Rubbish collection and repairing damaged roads

Once tax has been taken, you are free to spend the rest of your money as you wish. This might include bills such as rent. Or more exciting things like a new pair of trainers or video game. Great news! There isn’t any tax on hats anymore as I’ve had my eyes on this one for ages!