How to Deal With HMRC After Someone Dies

Dealing with HMRC is one of the more involved parts of estate administration. Even if Tell Us Once was used when registering the death, there are several areas where you will need to contact HMRC separately. This guide covers what executors need to do, which reference numbers to use, and what timelines to work to.

Does Tell Us Once Notify HMRC?

Tell Us Once is a government service offered by most register offices at the time of registering a death. If the deceased's family used it, it automatically notifies a number of government departments, including HMRC. This means HMRC is informed of the death and will stop most correspondence going to the deceased.

However, Tell Us Once does not complete the tax affairs of the estate. You will still need to contact HMRC separately for:

• The final income tax position (whether a refund is owed or tax is due)
• Self Assessment, if the deceased filed tax returns
• PAYE, if the deceased was an employee or pensioner
• VAT, if the deceased ran a VAT-registered business
• The Construction Industry Scheme (CIS), if applicable
• Income generated by the estate during the administration period

If Tell Us Once was not used, contact HMRC's bereavement helpline directly: 0300 200 3300 (Monday to Friday, 8am to 6pm).

Which HMRC Reference Numbers to Use

HMRC uses several different reference numbers. When you contact them, have these ready:

Reference type	What it looks like	When you need it
National Insurance number	Two letters, six digits, one letter (e.g. AB 12 34 56 C)	Identifying the deceased to HMRC
Unique Taxpayer Reference (UTR)	10 digits	Self Assessment and business tax
PAYE reference	Employer reference, found on P60 or payslips	Finalising employment income
VAT registration number	Nine digits, starting with GB	Closing a VAT registration

You should be able to find most of these in the deceased's paperwork, online account, or previous tax correspondence.

The Final Income Tax Return

Everyone is liable for income tax on income they received up to the date of death. The tax year runs from 6 April to 5 April. The final return covers the period from 6 April (start of the current tax year) to the date of death.

If the deceased was not in Self Assessment, HMRC will calculate the final tax position and write to the estate. If there was no Self Assessment obligation, you do not need to file a return. HMRC will issue a P800 or a Simple Assessment letter showing whether a refund is owed or a payment is due.

If the deceased was in Self Assessment, you must file the final return as executor. The normal Self Assessment deadlines apply: 31 January for an online return for the previous tax year. For a death mid-year, HMRC may agree a different arrangement, but you should contact them early.

PAYE: Employees and Pensioners

If the deceased was employed or receiving a company or private pension, their income will have been taxed through PAYE. Contact HMRC (or the employer's payroll department) to establish the final tax position from the start of the tax year to the date of death.

In many cases, there is a tax refund owed to the estate. This happens because PAYE assumes income will continue for the full year, and when it stops early the person has paid too much. The refund forms part of the estate.

HMRC will issue a P800 showing any tax owed or refunded. You may also need the form P45 from the deceased's employer or pension provider to finalise the position.

Self Assessment: Filing as an Executor

If the deceased filed Self Assessment returns (for example, because they were self-employed, had rental income, or had other untaxed income), you as executor are responsible for filing the final return.

Steps to take:

• Notify HMRC of the death using the bereavement helpline or the online portal
• HMRC will mark the Self Assessment account as deceased and set up an estate reference if needed
• File the final return covering 6 April to the date of death
• Pay any tax due from the estate, or reclaim any refund
• If the deceased was self-employed, you may also need to notify HMRC to close the business for tax purposes

Keep copies of all correspondence with HMRC. They can take several weeks to respond to written enquiries.

VAT and the Construction Industry Scheme

If the deceased was VAT-registered (for a business or sole trader income), the VAT registration must be cancelled. Contact HMRC's VAT helpline or use the online VAT portal. A final VAT return will be required up to the date of death or the date the business ceased trading.

Similarly, if the deceased was registered under the Construction Industry Scheme, notify HMRC to close the registration and file any outstanding returns.

Income Generated by the Estate During Administration

This is an area many executors overlook. Once someone has died, any income generated by their assets during the administration period is taxable in its own right. This is called estate income.

Estate income includes:

• Rent from a property that forms part of the estate
• Dividends from shares held in the estate
• Interest on money held in estate bank accounts
• Income from business interests passing through the estate

During the administration period, the estate is taxed at basic rate on savings and dividend income, and at the basic rate on other income. There is a small amount of income that can be received tax-free each year (the estate's annual income tax allowance). If the administration period is short and income is modest, HMRC may not require a formal return. For longer or more complex estates, you will need to register the estate for Self Assessment and file estate income returns.

Beneficiaries receive their share of the net estate income with a tax credit, which they may be able to use to reclaim tax paid.

What Happens to Tax Debts

If the deceased owed tax at the time of death, that debt is a liability of the estate. It must be paid from estate funds before any distributions are made to beneficiaries. HMRC is an ordinary creditor and is paid in the same priority order as other unsecured debts (after funeral costs and testamentary expenses).

If the estate does not have enough assets to meet all debts, the estate is insolvent and there are specific rules about how to proceed. Seek professional advice if this appears likely.

When to Get Professional Help

HMRC matters can escalate quickly if the deceased:

• Was self-employed or ran a business
• Had multiple sources of untaxed income
• Owned overseas assets or had foreign income
• Was subject to an HMRC enquiry or investigation at the time of death
• Owed significant tax debts

In these situations, an accountant or tax adviser who specialises in estate administration can save you considerable time and reduce the risk of penalties for late or incorrect returns.

Key Timelines

• As soon as possible: Notify HMRC of the death if Tell Us Once was not used
• Within weeks of death: Contact HMRC to establish the PAYE position and request any P800 refund
• 31 January following the tax year of death: Deadline for filing the final Self Assessment return online
• During administration: Report estate income if administration extends beyond the tax year
• Before distributing the estate: Confirm all tax liabilities are settled and HMRC has issued a clearance or no further liability letter if appropriate