Finsol Tax Advisors is the ideal and leading Accountancy Firms in London who provide various kind of accounting service and professional Accountants.
Your tax code is used by your employer or pension provider to work out how much Income Tax to take from your pay or pension.
The code is worked out by HM Revenue and Customs (HMRC), who sends it to your employer or pension provider.
Letters in your tax code: Letters in your tax code refer to your situation and how it affects your allowances.
If your tax code has a ‘K’ at the beginning:
Tax codes with ‘K’ at the beginning mean you have income that isn’t being taxed another way and it’s worth more than your tax-free allowance. For most people, this happens when you’re:
• paying tax you owe from a previous year through your wages or pension
• getting State benefits that you need to pay tax on (like the State Pension)
• getting benefits from work that you must pay tax on (like a company car or health insurance)
If you have any questions or would like to know more information about our accountants and their services, don’t hesitate to contact us.