Answer: He pays £4500 as tax.
Step-by-step explanation:
Given: John's earnings before tax = £38000 > £20000
Money over £20000 = £38000 - £20000 = £18000
Tax amount = 25% of money over £20000
⇒Tax amount= 0.25 x (18000 ) [25% = 0.25]
⇒Tax amount= £ 4500
Hence, he pays £4500 as tax.
