Jonny Gordon

I made a payment on account in January for 24/25 in respect of rental income received from a second property. My tax code was subsequently changed to reflect an increase in my salary and the loss of my personal allowance. The new code also appears to have some profit for my rental property included, such that I am now paying an extra £1.100 per month in income tax via PAYE. Ownership of the rental property is now shared with my wife, as a result of which my rental income has dropped significantly. By my calculation, the increase in tax I am paying via PAYE, assuming that it continues until the end of the 24/25 tax year, means I will now settle the full tax liability, including in respect of the rental profits, via PAYE. However, to ensure I don't unintentionally create a shortfall on which HMRC will charge interest, if I request to reduce my payments on account by 50%, such that the first payment on account I paid in January covers the total aggregate amount of both the payments on account HMRC have requested for 24/25, will HMRC cancel the second payment on account altogether, or will they simply reduce the second payment on account by 50%?