Reasonable excuse for not filing returns....Death?

Reasonable excuse for not filing returns....Death?

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My father died without filing any tax returns for a number of years due to ill health.

He died in 2010 and have just received a tax return for 2009/10 in July 2014.

Am I right in thinking that as the return need not have been filed before 31st January 2011, that the fact that he died before this date might be a reasonable excuse for not filing a return and so HMRC have only 4 years to raise an assessment? They had until 5th April 2014 and cannot raise one after this date.

He had not filed returns for a number of years as he had both been very ill and had not been asked to.

Can I push back on this?

Replies (9)

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By The Innkeeper
31st Jul 2014 13:26

Hmm

Are you aware of any reason that might have triggered the issue of a return now. You don't state when in 2010 your dad passed away. If it was before 5th April 2010 they might be seeking a return from 6yj April 2009 to date of death. An interesting conundrum - if you call they wont talk to you as you don't have a valid authority to act as agent. Where you an executor of the Estate?If you were you could send the form (648) which you can download from HMRC website.

You might try writing with a copy of the death certificate to prove the point.

Sorry for the rambling thoughts

Thanks (1)
By ireallyshouldknowthisbut
31st Jul 2014 14:03

.

If you are execcutor of your late father's estate there should be no problem speaking to them once its set up.

There is a special department and its staffed by real people and not monkeys:

http://www.hmrc.gov.uk/trusts/prs_office.htm

 

Usually very helpful.

Thanks (2)
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By snigglesnaggle
31st Jul 2014 16:08

Probate

He died in Late 2010 but I only finally obtained probate in December 2013.

There has been a bit of correspondence with HMRC:
I had sent off the IHT400 in August 2013,

I wrote to them in January of this year claiming the remittance basis for 2009/10 (He was a non-dom) and most recently wrote  in May asking if they wanted Estate returns for 10/11 and subsequently.

I would prefer not to have to complete this if possible.

 

Regards

 

 

 

Thanks (0)
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By jon dickinson
31st Jul 2014 17:19

Death

If it's any help I recently appealed a late filing penalty with Companies House following the death of a Sole Director's brother. This was accepted as a valid excuse.

Thanks (1)
By Paul D Utherone
31st Jul 2014 17:32

You were only in a position to file returns

once you had obtained probate.

HMRC then allow 30 days from Grant to submit the returns, on the basis presumably that you will have had them ready to go once Probate came through

Thanks (1)
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By Ajtms
04th Aug 2014 11:34

Time Limits

Section 40(1) TMA 1970 is very clear. The time allowed for HMRC to issue an assessment upon executors cannot be longer than 4 years after the end of the year in which the death occurred. 

Thanks (1)
Replying to ketteringUK:
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By snigglesnaggle
04th Aug 2014 13:12

Executor responsibly

Ajtms wrote:

Section 40(1) TMA 1970 is very clear. The time allowed for HMRC to issue an assessment upon executors cannot be longer than 4 years after the end of the year in which the death occurred. 

Does this mean that provided HMRC request a tax return within 4 years of the end of the tax year in which he died.

As executor am I responsible for any previous unfiled returns? He had never filed a tax return in the UK.

2009/10 is more than 4 years ago now so I had thought that this was timed out.
2010/11 was the year of death and is still within the 4 years.

Thanks (0)
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By Ajtms
04th Aug 2014 13:59

Time Limits

HMRC can still issue assessments up until 5 April 2015 for all the tax years 2004/2005 to 2010/2011 per section 40(2) TMA 1970. Requesting you to complete a return by 5 April 2015 is insufficient for they do not have to wait for returns to issue estimated assessments. It is the duty of HMRC to issue assessments by 5 April 2015 whether they receive returns or not. After 5 April 2015 no assessments can be made for any tax year to the date of death.

Thanks (1)
By tonyaustin
05th Aug 2014 14:54

if he died before 5 April 2010

then the time limit for returns and assessments expired on 5 April 2014, being 4 years after the end of the year of assessment in which he died per section 40 (2). It does not matter why the tax was not declared or paid.

Thanks (1)