Tax Code K475 Explained
Your tax deductions (such as taxable benefits or unpaid tax) exceed your Personal Allowance. Instead of receiving a tax-free amount, £4,759 is added to your taxable income. This means you are taxed as if you earn £4,759 more than your actual pay. Common reasons include a company car, private medical insurance, or tax owed from a previous year. The maximum tax deducted through a K code cannot exceed 50% of your gross pay.
Updated for the 2025/26 tax year (6 April 2025 to 5 April 2026).
Code breakdown
- Tax code
- K475
- Personal Allowance
- -£4,759
- Region
- England, Wales, or Northern Ireland
- Suffix
- K
- Suffix meaning
- Your deductions exceed your Personal Allowance, so the excess is added to your taxable income.
- K code
- Yes — income added to taxable pay
Example: £30,000 salary
Estimated take-home pay with tax code K475
- Gross salary
- £30,000
- Personal Allowance
- £0
- Taxable income
- £34,759
- Income tax
- -£6,951.8
- National Insurance
- -£1,394.4
- Annual take-home
- £21,653.8
- Monthly take-home
- £1,804.48
Why do I have tax code K475?
Common reasons HMRC may have issued this tax code:
- • Your taxable benefits (company car, private medical insurance) exceed your Personal Allowance
- • HMRC is collecting unpaid tax from a previous year through your tax code
- • You have significant untaxed income that needs to be accounted for
Think your tax code is wrong?
If tax code K475 does not match your circumstances, you may be paying too much or too little tax. You can:
- • Check your code in your Personal Tax Account on GOV.UK
- • Contact HMRC on 0300 200 3300 (Mon-Fri, 8am-6pm)
- • Use the HMRC app to view and update your tax code
How UK Tax Codes Work
Your tax code tells your employer or pension provider how much tax-free income you are entitled to in the current tax year. HMRC assigns your tax code based on your Personal Allowance, any taxable benefits, untaxed income, or adjustments from previous years. The numbers in your tax code represent your tax-free amount divided by 10, and the letters indicate your situation. For example, 1257L means a Personal Allowance of £12,570 with the standard suffix. If your code changes, your employer adjusts your tax deductions automatically. You can check and update your tax code through your Personal Tax Account on GOV.UK.
Tax codes are issued by HMRC at the start of each tax year and can change during the year if your circumstances change. Common reasons for a tax code change include starting a new job, receiving benefits in kind such as a company car, or having your Personal Allowance reduced because your income exceeds £100,000. If you have multiple jobs, each employer receives a separate tax code. Your primary employer normally receives your full Personal Allowance via a code like 1257L, while secondary employers typically receive a BR (basic rate) or D0 (higher rate) code meaning all income from that source is taxed at the relevant rate with no allowance.
If you live in Scotland, your tax code will start with an S prefix (for example S1257L), and if you live in Wales it will start with a C prefix (for example C1257L). These prefixes tell your employer to apply Scottish or Welsh income tax rates instead of the standard England and Northern Ireland rates. The Personal Allowance amount remains the same regardless of which country you live in within the UK.