Income tax letter

chaskins

Hi,

First of all sorry if this is not the correct place to post this question.

My father-in-law passed away at the end of August and recently my mother-in-law receieved a letter from the HM Customs and Revenue stating that her late husband owed a sum of money for underpayment of PAYE income tax dating back to 2003. In the letter it was phrased as a voluntary payment.

My wife rang the number on the letter and asked if this was voluntary, only to be told that means she should pay the money owed.

My questions then, is this really a voluntary payment and is my mother-in-law legally required to clear this tax debt?

Thanks for any help trying to make sense of this letter.

Regards,

Chris

fengirl_2

It sounds like a PAYE underpayment which was destined to be collected through his code number but now obviously cannot be. The alternative is for HMRC to ask for a voluntary payment, although there is no suggestion that this is really voluntary. I think HMRC have used this term in error in this case.
The executor needs to ask to see the calculation of the underpayment and check it. They need to satisfy themselves that the tax is due and that it isnt as a result of official error or some kind before it is paid.

BoGoF

A 'voluntary payment' is an informal way of collecting tax due which avoids the need for bringing the case into Self Assessment - it is the only way of collecting tax due in a non self assessment case. Usually if a voluntary payment is not made then a Tax Return is issued for completion which would generate a 'collectible' debt.

However as fengirl states the calculation should be checked and the tax office asked why the calculation has been issued more than 5 years after the end of the tax year given that 'revenue delay' may apply.

Also if he paid tax in the year of death a repayment may de due, have the executors completed a form R27 to claim this (if appropriate)