Dead new client!

Taking on a dead client

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Not done this before so I might be asking a silly question.

I am taking on a new client who died during the tax year and I need to file a return so that the estate can be tidied up.

The two issues I have are:

Getting authority .... I assume that the executors can give me that.

The second issue is that the "client" does not appear to have any records. I have managed to get hold of CIS certificates for a period of the year where he was working in construction, however, nobody knows what he did for the rest of the year, it appears that he may and I do mean may, have worked cash in hand for various local companies and obviously I have no idea of the amounts he received or where to go to ask. I also do not have any record of any expenses. I don't want to put in a provisional return as the tax affairs have to be clear before the estate can be finalised.

Any suggestions as to the best way forward, other than ringing up HMRC and saying would estimated figures be OK, but what do I base the estimates on!! 

Replies (9)

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RLI
By lionofludesch
08th Jan 2018 10:49

Just do your best. If HMRC raise an enquiry, say you can't get an answer from your client.

My dad died in harness. I just wrote up his books for the last month or so from what I had.

Obviously, HMRC enquiries are less common than they used to be but if I had one for a dead person, I'd expect HMRC to back off pretty quickly. There'll be no answers to any questions they ask. Just play them with a dead bat.

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By bernard michael
08th Jan 2018 11:19

Bearing in mind the state of his affairs did he leave a will and nominate executors?
If you want an easy life refuse the
instructions

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Replying to bernard michael:
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By Peter Kilvington
08th Jan 2018 12:03

I went to the funeral as I knew him, in this case, an easy life is to accept.

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Replying to Peter Kilvington:
RLI
By lionofludesch
08th Jan 2018 12:12

I disagree with Bernard. Though you need to make it clear that you can only prepare accounts and returns from the information given to you - and the chances of that being complete are limited.

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Replying to lionofludesch:
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By The Innkeeper
08th Jan 2018 12:19

remember that until probate is granted there is no legally competent individual who can appoint you

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By ireallyshouldknowthisbut
08th Jan 2018 12:32

Just do what you can, and put in the white space the basis on which you have completed your work, and remind HMRC that its hard to ask dead people about things.

And remember that whilst the dead cant argue, the executors certainly can.

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ALISK
By atleastisoundknowledgable...
11th Jan 2018 08:15

Best you can do it what you know - he worked CIS for a few months. At least the executors will be happy as there’ll be no tax to pay! If HMRC know otherwise / you are missing COS statements, I’m sure they’ll tell you. Sometime.

On the off chance HMRC will actually read it, declare in the white box that he died during the year.

As mentioned, HMRC will back off any investigation as soon as they realise he’s dead. Can you imagine the newspaper headlines?!

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By Cheesy-peas
11th Jan 2018 09:05

I've succeeding in getting authority in the past by filling out a 64-8 with the details of the executor/personal representative and and including the dead persons utr number

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By pauljohnston
12th Jan 2018 12:54

If there is an appointed executor his authority comes from the will. All probate does is to confirm that. Whereas if there is no will the authority comes from the Letters of Administaion issued by the court.

HMRC have a special section that deals with deceased cases. This is staffed by experienced people. Complete the tax return as recommended below. File a 64-8 signed by executor or the administrator .

As long as you have an HMRC account as an agent you can file a tax return with a UTR.

I suggest you ask the tax office for a copy of the last tax return submitted just to make sure there are no other assets on which you should declare income to date of death.

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