Know Your Client and K Code

Know Your Client (KYC)

Something for your accountant to think about and depending on your business for you as well.  The Money Laudering rules are the reason we have to formally identify our clients through your driver’s licence, passport and utility bills.

If your accountant is suspicious of the origins of a client’s money, assets or a transaction he (or she) may have to complete a report to the Serious Organised Crime Agency (SOCA).  The online system at SOCA is the quickest and best way to report a transaction and to ask for permission to proceed with that transaction.

K code

If your total tax allowances (personal allowance and other potential allowances) are less than the deductions you will have a negative tax code.

The number in a K code multiplied by ten broadly indicates how much must be added to your taxable income to take account of the excess untaxed income you received.  The tax deducted for each pay period cannot be more than half of your gross pay or pension for that period. If more tax is due you will pay it at a later date.

There is more information on tax codes here.