Question

gross income £12000 tax free allowance £6475 what is taxable amount @20%, tax payable,net income and weekly net amount how to work out?

Answer 1

We calculate for the taxable income by subtracting the tax free allowance from the gross income.

Taxable income = Gross income - tax free allowanc
Taxable income = (£12,000 - £6,475)
= £5,525

Hence, the taxable income is equal to £5,525.

Net income:
This would be equal to the gross income minus the amount of taxes to be paid.

Net income = Gross income - amount of tax to be paid
Net income = (£12,000) - (0.20)($5,525)
Net income = $10,895

Therefore,
ANSWER: $10,895