How to notify HMRC, deal with outstanding tax returns, and claim any tax refunds owed to the estate.
This guide is part of ProbateHelp's Notifications guide cluster. Estimated reading time: 12 min.
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Tell Us Once notifies HMRC of the death. You do not need to report the death to HMRC again just because the person had tax affairs. HMRC should contact the personal representative about the deceased's tax, benefits and entitlements. Contact Bereavement Services if you need help, HMRC asks for a return, you cannot find the records, or business taxes and estate income need separate action.
The final tax return covers the deceased's income from the start of the tax year (6 April) up to the date of death. The estate tax return (SA900) covers income the estate itself generates during the administration period — for example, interest on bank accounts, rental income from a property, or dividends from shares. These are two separate tax obligations and may require two separate returns.
HMRC will tell the personal representative whether a return is needed and will send the form and a letter. The completed return must reach HMRC by the date in that letter. Do not rely on a standard period. Contact Bereavement Services promptly if the deadline, an existing penalty or the records are unclear.
There is no single published completion time for every bereavement case. The work depends on whether HMRC needs a deceased person's return, a PAYE calculation, business-tax action or an estate return. Keep HMRC letters and reference numbers, follow the deadline in each letter and use the current reply-time checker or Bereavement Services if a response is overdue.
HMRC's calculation or letter will explain how the repayment can be claimed or paid. A repayment due because of the deceased's tax position is an estate asset, so record it in the estate accounts and do not treat it as the executor's own money.
Outstanding tax is a debt of the estate and must be dealt with before the remaining estate is distributed. If the estate may not have enough assets to pay every debt, do not choose an order yourself or distribute to beneficiaries. Take advice on insolvent-estate rules first.
ISAs continue to be exempt from Income Tax and Capital Gains Tax until the estate is closed or for up to 3 years after the person's death — whichever is earlier. This means ISA income during the administration period does not count towards the £500 estate income threshold. After the ISA is closed or the 3-year period ends, any income becomes taxable.
Self-employment adds separate questions about the deceased's Self Assessment, VAT, PAYE if there were employees, and whether a business continued after the death. Tell Us Once does not deal with business taxes. Contact Bereavement Services and the relevant business-tax team, and use an accountant or tax adviser where the records or trading position are not straightforward.