HMRC Added Big Penalties to Deceased Estate - Will The Want All The Charges?

woodbine66

A relative died 15 months ago. She was a bit of a recluse who was estranged from her family. We are her first, nearest and just about only family, and have only learned of her passing 2 weeks ago.


This week, we gained access to her house that has been closed up since she died. In the mountain of post are demands from HMRC for her, by now, very overdue self assessment. I think between Jan 2018 and Aug 2018 they added approx. £1200 of penalties. We haven't opened all the post, but the current figure may now be double or more.


In the circumstances, will they insist on payment of all of the charges? We will contact HMRC on Tues.

kazwookie

I suggest you ring them on Tuesday, and give them the facts and see what they say

Yorkshireman99

woodbine66 wrote: »

A relative died 15 months ago. She was a bit of a recluse who was estranged from her family. We are her first, nearest and just about only family, and have only learned of her passing 2 weeks ago.


This week, we gained access to her house that has been closed up since she died. In the mountain of post are demands from HMRC for her, by now, very overdue self assessment. I think between Jan 2018 and Aug 2018 they added approx. £1200 of penalties. We haven't opened all the post, but the current figure may now be double or more.


In the circumstances, will they insist on payment of all of the charges? We will contact HMRC on Tues.

As a matter of law HMRC are entitled to recover the charges. However in the circumstances the executors should have dealt with the matters. Who are they. I assume there is a will.

unholyangel

0300 200 3310 is the number for self assessment.

It should be the executor (or whoever is applying for letters of administration) who contacts them as they won't be able to discuss the account with anyone else.

Dont expect it to be a quick call though - they're always busier than usual at this time of year.

Keep_pedalling

Any penalties post death are likely to be waved, if there are any outstanding prior to death they will probably still stand.

woodbine66

Yorkshireman99 wrote: »

As a matter of law HMRC are entitled to recover the charges. However in the circumstances the executors should have dealt with the matters. Who are they. I assume there is a will.

Thanks for your reply. We are only about to start applying for letters of admin. now. It's an intestate situation. Basically, she died alone in hospital. Her body stayed at the local coroners for approx. 8 months. She had cut herself off from all family and had no friends.


Between dying and her funeral, someone from the coroners gained entry to her house for next of kin details or funds to pay for service. The relative was a hoarder and the house is full of 'stuff'. They only managed to find the details of the estate agent who sold her previous property and contacted him. He knew no family, but paid for her funeral and undertook the search for relations. 2 weeks ago, he found us. We are now going to start the admin. process. Apart from the coroner's, we are the only people to enter her house in 15 months.

woodbine66

Keep_pedalling wrote: »

Any penalties post death are likely to be waved, if there are any outstanding prior to death they will probably still stand.

Many thanks for your reply. That sounds promising. Will we have to pay the self assessment and any penalties levied immediately? I'm guessing HMRC don't wait for the estate to be settled like all other creditors?

Keep_pedalling

woodbine66 wrote: »

Many thanks for your reply. That sounds promising. Will we have to pay the self assessment and any penalties levied immediately? I'm guessing HMRC don't wait for the estate to be settled like all other creditors?

No, any debts due will come out of her estate, HMRC are just creditors with unsecured debt, they do not have any priority over any other creditors and they are going to have to wait for probate like any other creditor.

If the estate falls into IHT territory expect more penalties as this should be paid within 6 months of the death.

konark

This is the 3rd thread you've started about your deceased long-lost relative and her missing car and how an estate agent had paid for the funeral.................