|Nicola was 18 and had just left
school. She and her mum had very little money. Nicola decided to get
a job for a year so that she could go to college, and pay her mum
for food and rent in the meantime.
Her boss knew that Nicola wanted to go to college and that her mum was poor. He told her that he would pay her in cash, and would not tell the government that she was working for him. This way neither Nicola or her boss had to pay any tax.
Nicola knew that this was against the law, but if she didn't pay the tax she would be £1,000 better off every year!
But Nicola also knew that if she did pay her tax it would be used to help pay for public services, such as roads, hospitals and schools. She wondered what would happen to those if everyone stopped paying tax.
And if she became ill or pregnant later in life, would she get less benefit if she avoided paying tax now?
What do YOU think Nicola should do?