Paying tax payment into off-set mortgage account.

[walkinthepark]

When doing my self assessment for the previous year, I had a small profit which meant I had to pay HMRC some tax. In order to cut my payment to HMRC, could I have instead paid the amount to my lender to bring down my loan?

[TaxationPete]

Does your mortgage provider know you are renting the property out. The payment to the provider would be regarded as a capital payment and it is only the interest that is deductible from the rental income. Regards Peter

[walkinthepark]

My lender is aware that I rent out the property on which I have a BTL loan. I have already taken into account the tax relief on the interest part of my loan.

But I wasn't sure whether I could choose between paying HMRC a tax payment or refunding my lender or even putting the money into my off-set mortgage account.

[Phlash]

I choose to pay off my loan taken out for an Italian holiday home with jacuzzi and on-site massages instead of paying my tax every year...