Tax Code K Explained

Name: PayslipIQ
Author: PayslipIQ

You owe tax on benefits exceeding your allowance

KK Code

What does K mean?

K codes mean your untaxed income (company benefits, state pension, etc.) exceeds your personal allowance. The number after K represents the amount to ADD to your taxable pay (multiply by 10). For example, K475 means £4,750 is added to your taxable income. Your employer cannot deduct more than 50% of your gross pay through a K code.

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Example

An employee with a company car worth £15,000 and medical insurance worth £2,000 might receive K475.

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Disclaimer: PayslipIQ provides educational guidance only. It is not financial, tax, or legal advice. Figures are estimates based on the data you entered. Always verify against your employer's payroll, your HMRC personal tax account, or a qualified adviser before making decisions.