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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 - <span>£6,475)
= </span><span>£5,525
Hence, the taxable income is equal to </span><span>£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 = (</span><span>£12,000) - (0.20)($5,525)
Net income = $10,895
Therefore,
ANSWER: <em>$10,895</em></span>
