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Hi Donna,
I didn't know the answetr to your question but it made my curious so I looked on the HMRC website. They said the following:
Tax codes with the letter ‘K’
The letter K is used in an employee’s tax code when deductions due for company benefits, state pension or tax owed from previous years are greater than their personal allowance.
Multiply the number in their tax code by 10 to show how much should be added to their taxable income before deductions are calculated.
Example An employee with tax code K475 and a salary of £27,000 has taxable income of £31,750 (£27,000 plus £4,750).
The tax deduction for each pay period can’t be more than half an employee’s pre-tax pay or pension.
Thankfully I haven't got any of these with any of my clients but hopefully the above will help you.
Regards
Alex
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