HMRC has explained how to check all taxes are correct in the event of the death of a pensioner.
A man contacted the tax body over X to ask how the rules applied for a person who had died earlier this year.
They asked: “If HMRC has been notified that someone died during last financial year, and HMRC has not sent any communication or tax return form for the part of the financial year when the person was alive, is any further action needed to pay income tax up to the date of death?”
The tax authority asked the man to explain what the person’s income and tax position was up to when they died and if they could provide a P45.
They explained: “A retired person aged 82, total income above the personal allowance (in the basic rate band) from state pension, modest private pension, and dividend income. Always used to complete tax returns. I don’t have the records; asking on behalf of another family member.”
HMRC then asked them if the department had requested a tax return.
The person said in response: “In past years she was always sent and completed a paper tax return form because of the dividend income.
“This spring (after notification of her death in January) no self assessment form was sent, and no request has been made for a tax return for April 2023 to January 2024.”
The Government group then asked the man if he was the executor and if he had been sent any statements from the pensions providers.
He said he was not the executor but that he could ask about the pension details with the executor.
HMRC then said: ” No further information would be needed if they have all the required documents.”
The man contacted HMRC again the next day to say: “I’ve now found out that, although the person completed a tax return each year, it was a zero return.
“She has had no income tax to pay for years, i.e. her income was within her personal allowance and thresholds.”
He said he assumed this was why she was not sent a tax return to fill in this year to cover the period from April 2023 up to her death.
A representative of HMRC said: “That could be the case however to confirm, the executor would need to contact the helpline directly please.”
The group directed him to the ‘Self Assessment: general enquiries’ webpage on the Government website.
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