HMRC chasing payment from late father

[Carlton Banks]

Folks

Briefly, my father passed away last recently.

amongst grieving, looking after my mum, sorting out his affairs, I also had to file his tax returns.

Problem was, he had a complex estate and also had company returns to file.

I managed to file all but one (with my accountant) and also do my own as well as my mothers (my father did that also).

Anyway, HMRC belated granted us an extension on January 15th for 4 months after I had nearly killed myself with sleepless nights, allnighters trying to get this done whilst working in a demanding job myself. In any case, at least we had more time for his personal tax return (the one that had the extension).

Anyway, didn't think much after making the submissions and slowly finishing the last one only to be informed by post (to my fathers address) that they are fining him ( they note he is deceased) £x as an estimate % of money he owes.

Now we haven't even probated his bloody will yet so his estate is frozen.

I could make a payment but as his executor, that's all I am as the will is yet to be probated.

I require some advice here as I am going to burn out trying to probate his will(s) whilst being threatened to make payments. Actually very stressed and disappointed to see tax's are not final but death is.

Thanks in advance.

[anonymous-user]

Why the rush?

Just chill out and take your time.


In my experience if you call,or write, to them and explain in words on one syllable that he is dead and they will have to wait they will waive the fine and interest.

[Eric Mc]

Is there a tax liability?

If so, have you got a rough idea as to what it is?

If you have, you could make a payment now as that would mitigate any interest on late payments being charged. If you overpay, HMRC will refund any overpaid amounts (with interest) once matters have been finalised.

HMRC are within their powers to levy fines for late submission of tax returns. If you had an agreement with HMRC that they would NOT levy any such fines, you should have had it in writing. A phone agreement is effectively no agreement.

HMRC will waive fines if they are formally appealed and you can offer a "Reasonable Excuse" as to why the return was late. Feeling hassled and under pressure is not normally accepted as being a "reasonable excuse".

[Piersman2]

Eric Mc said:

HMRC will waive fines if they are formally appealed and you can offer a "Reasonable Excuse" as to why the return was late. Feeling hassled and under pressure is not normally accepted as being a "reasonable excuse".

One would hope 'being dead' would a reasonable excuse.

Commiserations OP. Let the accountant sort it out, that's what they're for.

[Eric Mc]

Piersman2 said:

Eric Mc said:

HMRC will waive fines if they are formally appealed and you can offer a "Reasonable Excuse" as to why the return was late. Feeling hassled and under pressure is not normally accepted as being a "reasonable excuse".

One would hope 'being dead' would a reasonable excuse.

Commiserations OP. Let the accountant sort it out, that's what they're for.

Being dead is actually normally NOT a reasonable excuse, as HMRC expects that someone else has been tasked with submitting any outstanding returns - and they won't be dead (hopefully).

Being very ill IS often allowed - although they will want evidence that the illness was indeed serious.

[The Mad Monk]

Carlton Banks said:

Folks

I also had to file his tax returns.

But

Surely that can't be right?

You can't be responsible for someone else's tax return?

What happens if you shrug your shoulders at HMRC and tell them it's nothing to do with you?

[Eric Mc]

Of course you can. Many people submit tax returns on behalf of others. There are a number of ways this is done -

as an executor for a deceased person

as someone with power of attorney over another person's tax affairs of another

as an agent (such as an accountant)

This may change under the Making Tax Digital rules but HMRC has still to clarify how tax submissions can be made by third parties from 6 April 2018.