Sadly client has passed away and I fully understand the procedures regarding her final self-assessment - this year has already been completed.
My query is that she employed two part-time people and rented out chairs in her salon so the salon is still open. The employees were under the threshold but she still wanted to remain as an employer with HMRC in case circumstances changed.
The employees were paid weekly so my queries are:
Do I still process payroll until her husband sorts things out?
Do I notify HMRC? - I feel this should be done by her husband.
I don't want HMRC issuing penalties for non submission of FPS.
However, I don't see how I can submit an EPS advising she is no longer an employer as I have not been instructed to do this.
Any assistance will be appreciated - just in case it is relevant all this is based in Scotland.
Replies (3)
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Are the employees still being paid?
If so, who is paying them - the husband?
If so, I would submit the weekly FPS in the deceased wife's name. You or the widower should write to HMRC, NIC & EO, BX9 1BX, to notify them of the wife's death and say (presumably) that her executors are continuing to run the salon for the time being.
If the employees are no longer being paid, I would process them as leavers and submit a final EPS for 2016/17 showing the PAYE scheme as having ceased.