Misconception 3 - The Queen does not pay taxes
Elizabeth II’s father (King George VI) fought not to pay tax as he regarded it as a Royal Prerogative. When the debate rose again in parliament (as Royal Finances tend to do every few years) it was eventually decided by Her Majesty that she would pay tax but at a lesser rate and she wouldn’t pay Stamp Duty, inheritance tax or primarily income tax. And now as a result of that, on all her private estates (e.g. the Duchy of Lancaster) she pays income tax.