Debts after death

GavCB

My Mum passed away in August leaving just enough money to cover her funeral cost. She was receiving a SP and AA at the higher rate. After paying her monthly care invoices, it left her sufficient money (just) to live on. Having paid for her funeral and wake (at my expense) I have now received her yearly tax invoice from HMRC for tax due 23/24 for £717.00. I have written to HMRC and asked them what the procedure is, having no funds available to pay this. Probate won't be obtained as she had nothing. I am her Son and not her personal representative. I'm hoping that I am not personally liable for her debt, and that each unpaid bill will be written off. She lived in a house that I owned, so there isn't any estate, other than the money she left. Can anybody offer any advice? 

Keep_pedalling

Someone with no savings and on PC is highly unlikely to have sufficient taxable income to pay any tax you need to query this.

GavCB

her SP & AA takes her over her annual allowance, so she pays a tax bill each year. The most recent bill came in within days of her funeral. 

lisyloo

You are not personally liable.

Paying bills and expenses after someone dies - BakerLaw (baker-law.co.uk)

Funeral expenses generally take priority over all other claims against an estate, except where a debt has been secured against a particular asset, such as a car loan or mortgage.

Testamentary expenses are next. These are the expenses in respect of the estate administration. Priority debts follow, to include bills for tax and Council Tax. Finally, unsecured debts are paid last. These include credit card bills, store cards and utility bills.

Keep_pedalling

AA is not taxable income.

JGB1955

Attendance allowance is not taxable, so it must be the SP that has triggered this.

Linton

You have no personal liability for any of your mother's debts unless possibly if she deliberately impoverished herself by giving you all her savings.  Which seems highly unlikely in the circumstances.

If you are not her executor/administrator I suggest you do not involve yourself in the winding-up of the estate. Leave the job to the person who is.  So the HMRC letter should be passed onto them to respond.

Brie

Are you sure that's what the letter from HMRC actually says?  That there's £700+ owing?  For 23/24?  My understanding was that if there was only SP then it's only starting in 24/25 that tax might be owed.  I've heard of others who have received such letters as a warning that they need to set aside a bit for a bill that will be received next spring.   

And given that your mom died less than half way through the year she wouldn't have hit the threshold so nothing would need to be paid.  

But ultimately the estate doesn't have the funds no matter what and you are not responsible for her debts.

Sorry for your loss - last thing you need is a fuss from HMRC.  

GavCB

Thank you all for your comments and suggestions. I will check that I haven't got the tax year wrong. It would have been her SP that triggered the HMRC demand as I understand that AA is exempt from tax. She hadn't any savings to give away so I am not worried on that score. Again, thank you for your help in this matter. 

Keep_pedalling

For a single person PC can only be claimed if your taxable income is below £218.15 per week (£11,344 pa) and tops that income up to that level so below the personal allowance.

In order to owe £717 in income tax you would need an annual income of £16,155 pa, so something is not right here and I would request a breakdown on how HMRC have calculated that figure.

JGB1955

Keep_pedalling said:

For a single person PC can only be claimed if your taxable income is below £218.15 per week (£11,344 pa) and tops that income up to that level so below the personal allowance.

In order to owe £717 in income tax you would need an annual income of £16,155 pa, so something is not right here and I would request a breakdown on how HMRC have calculated that figure.

I don't think the OP mentioned Pension Credit....