Dealing with late father’s tax

jem16

My father passed away in January. I finally received a Simple Assessment for tax year 2023/24 at the end of March which has no been paid. At the same time I received a letter about tax year 2024/25 saying that he has underpaid tax and giving calculations. HMRC has said that they will write again in the current tax year with details of how to pay unless I choose to voluntarily pay the amount they have calculated.

i haven’t chosen to voluntarily pay this amount as the interest and dividend amounts are based on the 2023/24 tax year. I know the interest for 2024/25 is less than for 2023/24 by around £300.

Will HMRC send a proper calculation automatically for 2024/25 or do I have to contact them to tell them that the interest on the March 2025 letter is wrong?

Dazed_and_C0nfused

jem16 said:

My father passed away in January. I finally received a Simple Assessment for tax year 2023/24 at the end of March which has no been paid. At the same time I received a letter about tax year 2024/25 saying that he has underpaid tax and giving calculations. HMRC has said that they will write again in the current tax year with details of how to pay unless I choose to voluntarily pay the amount they have calculated.

i haven’t chosen to voluntarily pay this amount as the interest and dividend amounts are based on the 2023/24 tax year. I know the interest for 2024/25 is less than for 2023/24 by around £300.

Will HMRC send a proper calculation automatically for 2024/25 or do I have to contact them to tell them that the interest on the March 2025 letter is wrong?

The 2024-25 calculation should be updated once the actual interest details are available (banks have until 30 June to send those to HMRC).

But the dividend will need to be updated by you (or the Executor/Personal Representative if that is someone else).

I also wouldn't make a voluntary payment at this time, I would wait for the Simple Assessment for 2024-25 (making sure I had provided the dividend info). 

The Simple Assessment for 2024-25 can be paid early if you wish but strictly doesn't need paying any sooner than 31 January 2026.  

jem16

Dazed_and_C0nfused said:

jem16 said:f

My father passed away in January. I finally received a Simple Assessment for tax year 2023/24 at the end of March which has no been paid. At the same time I received a letter about tax year 2024/25 saying that he has underpaid tax and giving calculations. HMRC has said that they will write again in the current tax year with details of how to pay unless I choose to voluntarily pay the amount they have calculated.

i haven’t chosen to voluntarily pay this amount as the interest and dividend amounts are based on the 2023/24 tax year. I know the interest for 2024/25 is less than for 2023/24 by around £300.

Will HMRC send a proper calculation automatically for 2024/25 or do I have to contact them to tell them that the interest on the March 2025 letter is wrong?

The 2024-25 calculation should be updated once the actual interest details are available (banks have until 30 June to send those to HMRC).

But the dividend will need to be updated by you (or the Executor/Personal Representative if that is someone else).

I also wouldn't make a voluntary payment at this time, I would wait for the Simple Assessment for 2024-25 (making sure I had provided the dividend info). 

The Simple Assessment for 2024-25 can be paid early if you wish but strictly doesn't need paying any sooner than 31 January 2026.  

I am the executor. I have most of the dividend details and it will be less than the £500 allowance for that tax year so is going to make no difference to the calculation. Do I need to do anything as it’s pretty close to what is down for 2023/24? 

I’ll wait for the new calculation which hopefully won’t be as late as 2023/24 turned out to be. Still the house to sell and estate to be wound up but once it gets closer to that stage I’d like the tax bill sorted. 

Dazed_and_C0nfused

jem16 said:

Dazed_and_C0nfused said:

jem16 said:f

My father passed away in January. I finally received a Simple Assessment for tax year 2023/24 at the end of March which has no been paid. At the same time I received a letter about tax year 2024/25 saying that he has underpaid tax and giving calculations. HMRC has said that they will write again in the current tax year with details of how to pay unless I choose to voluntarily pay the amount they have calculated.

i haven’t chosen to voluntarily pay this amount as the interest and dividend amounts are based on the 2023/24 tax year. I know the interest for 2024/25 is less than for 2023/24 by around £300.

Will HMRC send a proper calculation automatically for 2024/25 or do I have to contact them to tell them that the interest on the March 2025 letter is wrong?

The 2024-25 calculation should be updated once the actual interest details are available (banks have until 30 June to send those to HMRC).

But the dividend will need to be updated by you (or the Executor/Personal Representative if that is someone else).

I also wouldn't make a voluntary payment at this time, I would wait for the Simple Assessment for 2024-25 (making sure I had provided the dividend info). 

The Simple Assessment for 2024-25 can be paid early if you wish but strictly doesn't need paying any sooner than 31 January 2026.  

I am the executor. I have most of the dividend details and it will be less than the £500 allowance for that tax year so is going to make no difference to the calculation. Do I need to do anything as it’s pretty close to what is down for 2023/24? 

I’ll wait for the new calculation which hopefully won’t be as late as 2023/24 turned out to be. Still the house to sell and estate to be wound up but once it gets closer to that stage I’d like the tax bill sorted. 

If it won't have any impact on the liability then there isn't really any need for you to bother.

Per gov.uk HMRC don't expect people to report them 

https://www.gov.uk/tax-on-dividends

But the Simpl Assessment calculation will only be issued once the actual bank interest details are with HMRC. 

jem16

Dazed_and_C0nfused said:

jem16 said:

Dazed_and_C0nfused said:

jem16 said:f

My father passed away in January. I finally received a Simple Assessment for tax year 2023/24 at the end of March which has no been paid. At the same time I received a letter about tax year 2024/25 saying that he has underpaid tax and giving calculations. HMRC has said that they will write again in the current tax year with details of how to pay unless I choose to voluntarily pay the amount they have calculated.

i haven’t chosen to voluntarily pay this amount as the interest and dividend amounts are based on the 2023/24 tax year. I know the interest for 2024/25 is less than for 2023/24 by around £300.

Will HMRC send a proper calculation automatically for 2024/25 or do I have to contact them to tell them that the interest on the March 2025 letter is wrong?

The 2024-25 calculation should be updated once the actual interest details are available (banks have until 30 June to send those to HMRC).

But the dividend will need to be updated by you (or the Executor/Personal Representative if that is someone else).

I also wouldn't make a voluntary payment at this time, I would wait for the Simple Assessment for 2024-25 (making sure I had provided the dividend info). 

The Simple Assessment for 2024-25 can be paid early if you wish but strictly doesn't need paying any sooner than 31 January 2026.  

I am the executor. I have most of the dividend details and it will be less than the £500 allowance for that tax year so is going to make no difference to the calculation. Do I need to do anything as it’s pretty close to what is down for 2023/24? 

I’ll wait for the new calculation which hopefully won’t be as late as 2023/24 turned out to be. Still the house to sell and estate to be wound up but once it gets closer to that stage I’d like the tax bill sorted. 

If it won't have any impact on the liability then there isn't really any need for you to bother.

Per gov.uk HMRC don't expect people to report them 

https://www.gov.uk/tax-on-dividends

But the Simpl Assessment calculation will only be issued once the actual bank interest details are with HMRC. 

He usually got his Simple Assessment in July after the end of the tax year so 2023/24 should have happened July 2024. It still hadn’t appeared before he died in January but it seems it was happening to quite a few people. 

Albermarle

jem16 said:

Dazed_and_C0nfused said:

jem16 said:

Dazed_and_C0nfused said:

jem16 said:f

My father passed away in January. I finally received a Simple Assessment for tax year 2023/24 at the end of March which has no been paid. At the same time I received a letter about tax year 2024/25 saying that he has underpaid tax and giving calculations. HMRC has said that they will write again in the current tax year with details of how to pay unless I choose to voluntarily pay the amount they have calculated.

i haven’t chosen to voluntarily pay this amount as the interest and dividend amounts are based on the 2023/24 tax year. I know the interest for 2024/25 is less than for 2023/24 by around £300.

Will HMRC send a proper calculation automatically for 2024/25 or do I have to contact them to tell them that the interest on the March 2025 letter is wrong?

The 2024-25 calculation should be updated once the actual interest details are available (banks have until 30 June to send those to HMRC).

But the dividend will need to be updated by you (or the Executor/Personal Representative if that is someone else).

I also wouldn't make a voluntary payment at this time, I would wait for the Simple Assessment for 2024-25 (making sure I had provided the dividend info). 

The Simple Assessment for 2024-25 can be paid early if you wish but strictly doesn't need paying any sooner than 31 January 2026.  

I am the executor. I have most of the dividend details and it will be less than the £500 allowance for that tax year so is going to make no difference to the calculation. Do I need to do anything as it’s pretty close to what is down for 2023/24? 

I’ll wait for the new calculation which hopefully won’t be as late as 2023/24 turned out to be. Still the house to sell and estate to be wound up but once it gets closer to that stage I’d like the tax bill sorted. 

If it won't have any impact on the liability then there isn't really any need for you to bother.

Per gov.uk HMRC don't expect people to report them 

https://www.gov.uk/tax-on-dividends

But the Simpl Assessment calculation will only be issued once the actual bank interest details are with HMRC. 

He usually got his Simple Assessment in July after the end of the tax year so 2023/24 should have happened July 2024. It still hadn’t appeared before he died in January but it seems it was happening to quite a few people. 

Yes there were a lot of delays.