Tax code change based on anticipated BTL income

[gentleman2012]

Hello,

My partner has been letting her flat for 3 years - this year her tax code has been reduced as a result of anticipated letting income in 2016-17.

As there is no guarantee of this income, is it appropriate for HMRC to make this assumption? Is this a new HMRC policy regarding BTL, enabling them to demand next year's potential tax in advance?

Thanks for your time.

[jpcentral]

It is something which HMRC are increasingly doing. We don't think it is appropriate but they are doing it.

She can contact HMRC and ask them to amend her tax code to remove the deduction for the BTL income.