Tax codes
If you have a K in your tax code
Tax codes with a ‘K’ mean you have income or deductions which are higher than your tax-free Personal Allowance and are not already being taxed.
For example, this can happen when you:
- are paying tax you owe from a previous year through your wages or pension
- get State Pension or taxable state benefits
- get company benefits you need to pay tax on - such as a company car
- get more interest on your savings than your Personal Savings Allowance
Your employer or pension provider uses the K tax code so that you pay tax for your other income or deductions at the employment or pension that the code is used on.
Employers and pension providers cannot take more than half of your pre-tax wages or pension when using a K tax code.