Pixel

HMRC’s Bereavement Service and Personal Applications

Gary Green
Gary Green
June 13, 2017

In 2012 a dedicated HMRC bereavement services team was launched that deals with PAYE and Self Assessment issues which arise when a taxpayer dies.

The team provides family members or personal representatives with a single point of contact. They work to finalise the PAYE and Self Assessment affairs of the deceased. The family members or personal representatives are ultimately responsible for settling any tax liability on untaxed income arising to the estate during the administration period. There are more complex rules where trusts are involved.

A New Automated Process

The R27 form Reclaiming tax or paying tax when somebody dies was withdrawn in 2014. It has been replaced with an automated process for PAYE taxpayers that is simpler to navigate.

This is because much of the information requested is held within the Real Time Information (RTI) system. The process for Self Assessment taxpayers has been replaced with a tailored service, which includes letters that match the individual’s circumstances.

Since the service was launched the specialist bereavement teams handles over 8,000 calls a month and offers a more simplified process for loved ones at a difficult time. HMRC has also made it easier for family members to authorise someone to act on their behalf.

At Key Business Consultants we are experienced in dealing with the issues that can arise. We are very happy to help in all these cases. In most cases, HMRC is able to settle the tax affairs of deceased taxpayers’ in-year instead of at the end of the tax year, giving the bereaved more certainty more quickly.

Estates in Administration

Whilst an estate is in the administration period it will usually be dealt with by HMRC’s Trusts & Estates department where:

  • The tax liability for the whole of the administration period is in excess of £10,000, or
  • the estate has a value at the date of death in excess of £2.5m, or
  • the proceeds of assets sold by the personal representatives in any one tax year exceed £250,000

The Trusts and Estates section also deals with any tax liability for the administration period:

  • if a trust has been created either under the deceased’s Will
  • or the rules of intestacy
Interested in our services?
Fill in your details and a member of our experienced team will be in touch shortly to discuss your needs.
We adhere to strict GDPR rules and do not reveal or sell your data to any third-parties. For more, please read our Privacy Policy.
Latest Insights
May 5, 2021
How To Reduce Corporation Tax by Claiming Creative Industry Tax Reliefs

Creative Industry Tax Reliefs (CITR) are a collection of Corporation Tax reliefs that allow qualifying companies...

April 27, 2021
National Minimum & Living Wage Considerations For Employers

One of our most important jobs, as employers, is to help control payroll costs. However, one...

April 20, 2021
Employment Allowance: How to Make and Backdate a Claim

The Employment Allowance allows eligible employers to reduce their National Insurance liability. The allowance increased to...

April 20, 2021
How to Get an Overseas Employee Set Up on UK Payroll

Getting an overseas employee set up on UK Payroll can be complex. Employers in the UK...

April 15, 2021
How To File Your Company End-of-Year Accounts For The First Time

If you have recently setup a new limited company or are thinking of doing so, then...

April 13, 2021
How Does Equity Crowdfunding Work? All You Need to Know

In this article, we uncover the ins and outs of equity crowdfunding and the key considerations...

April 8, 2021
Why You Should Set Up a Trust To Cut Inheritance Tax

Inheritance Tax (IHT) is levied on a person’s estate when they die and can also be...

April 1, 2021
The Best Tax-Efficient Options To Pay Yourself As A Business Owner

Most director shareholders want to ensure that they pay the combined lowest rate of tax possible...

March 29, 2021
Chancellor Warns Businesses to Keep Offices – But Remote Working Is Here to Stay

Despite the UK's 'work from home' guidance likely to come to an end in late June,...

View Our latest insights »
Get the latest UK tax & business news and guidance delivered straight to your inbox
We care about the protection of your data. No spam. Unsubscribe anytime.
02037 282 848
Mon-Fri 9am - 5.30pm
contact@keybusinessconsultants.co.uk
expert financial advice at your fingertips
Copyright © 2021 Key Business Consultants LLP. Reg: E&W OC389322
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram