car tax and the part time

scottieman

I work self employed part time, and I am also employed by a company part time. The company I work for are now offering a company car to their part time employees, which I would like to have, but would this alter the way I submit my self assessment?, does my tax code change for my self employment as well?. I have a small van that I solely use for self employment work and I dont use it for own use. But if I am given a company car from my employer for my employed work, why should I pay extra tax on my self employment work?....can someone help?

pjclar02

Hello there

Your income will be pooled to determine the rate of tax that you pay. You will still be entitled to the standard personal allowance of £8,105, and anything over this will be taxed at 20% until you hit the higher rate tax bracket.

The company car will result in a change to your PAYE code, which in turn will impact on the amount of net salary paid to you by the company. The change to PAYE code has no impact on your self-employment income.

So you add together your salary earnings, your car and your self-employment income to determine how much tax you pay.