Property income Taxed via Payments on account and PAYE

Last year I received rental income and paid taxes through payments on account (POA) and will pay a balancing payment on Jan 25. For this financial year HMRC have calculated my payments on account. However under PAYE income tax It’s also showing my (estimated) rental profit for this year and my PAYE code has been adjusted to reflect that. So I think I have two choices, One to contact HMRC to remove my POA and keep paying through PAYE Two to update my PAYE to show no property income so I pay via POA. Option one (via the website) does not seem to work as you have to at least set a minimum payment of £100. Option two (I’ve not tried) but seems wrong as I’ve been in effect saying I’m not receiving property income. Is that correct and if so which option should I go for? Mark

Hi mark3066,
In your case, you have a choice.
If you pay the tax through your tax code, then the tax payable on your property income, is collected throughout the year and the final liability is, hopefully, below £1000, so POAs are not required.
Your alternative, is to removed the deduction from your tax code and pay the tax in POA 2 instalments by 31 January and 31 July each year. You would need to contact our Self Assesment helpline on 0300 200 3310 or contact our webchat facility here to make any changes:
Self Assessment: general enquiries
Thank you.