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Sole Trader dies, in-house payroll.

How do we process final wages & redundancy payments?

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The local charity that I work at runs, as an additional service for supported clients, a very small payroll bureau for disabled people who directly employ their own care assistant.

Social Services approached us to ask about running the final payroll of a recently deceased lady who directly employed her two part-time carers. The carers will be due final hours, accrued holiday pay and a small statutory redundancy. The Council will make the funds available to pay.

We'd like to help.  The trouble is, the lady ran her own payrolls (probably using Basic Tools, but we don’t know for sure), and nobody knows how to obtain all the YTD figures and such like.

Payslip records are incomplete – sometimes the lady gave her carers their payslips, but often she simply forgot. As long as the staff got their wages, they didn’t worry too much about the hit-or-miss payslips.

With no 64-8 in place, how do we proceed? Can the executors authorise us to approach HMRC?  There’s probably a simple explanation, but this is a first for us.

Of course, I’ll phone HMRC’s Employer Helpline for some general advice, but like many people my experience is that making progress with anything out of the routine can be a bit of a lottery depending on who answers the call at their end.

Does anyone have direct experience of a similar situation? Any pointers will be very welcome.

Nick Newton.

Replies (5)

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By WhichTyler
11th Dec 2019 21:58

I'd suggest that the executors pay the carers the same amount as they had last month as an interim payment, contact HMRC to get logon details and 64-8 you. Once they have that you can log in and obtain ytd information, run the final payroll and pay the holiday and redundancy

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Replying to WhichTyler:
By David Heaton
12th Dec 2019 11:49

Getting logon details to get at the RTI YTD won't work, as the deceased taxpayer's online account is closed automatically on death. The executors have to get their own login and re-register, which will not give access to the deceased's RTI records. Speak to HMRC's Bereavement Service - they must deal with things like this all the time.

If the executors have the deceased's PC and her passwords, ask if they (or you on their behalf) can look for the BPT information on it. Experience suggests, however, that the records won't be up to date if the deceased was ill for a time (and maybe in hospital) before her death. The sick and dying often, understandably, lose focus on their statutory obligations, and she will possibly simply have given the carers their normal net pay without dealing with the payroll formalities. HMRC understands this, especially at the Bereavement Service.

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Replying to David Heaton:
By lionofludesch
12th Dec 2019 14:01

David Heaton wrote:

Getting logon details to get at the RTI YTD won't work, as the deceased taxpayer's online account is closed automatically on death.

Only if HMRC know about it, of course.

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By lionofludesch
12th Dec 2019 08:50

You need to get in touch with the executors who can give you the authority you need.

Then - who knows ? If you can't get at the RTI, get in touch with HMRC.

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By kestrepo
12th Dec 2019 11:17

It is the responsibility of the named Executors for administering the deceased's estate and deal with the assets as well as the liabilities. If Social Services are the Executors then you will need to get this confirmed in writing and I suggest in triplicate too. I suspect that they are unlikely to be the named Executors but I will keep an open mind! If you are confident that you can proceed and in the absence of any documentation I would ask the 2 carers to provide you with proof of payment for the last couple of payments paid into their bank accounts. You could then work the likely tax due out based on standard tax codes and pay it across to HMRC - better to pay some or most than nothing at all.

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