when do taxes end - when you die?

[btwo1]

when do you have to pay taxes to... is it the point that you're actually registered dead or the body is found? if you die in march, does no return have to go in for the the tax year 2013-14? perhaps it's different you're self employed.

[btwo1]

Apparently you pay tax up until the day you die... according to the HMRC website, not sure what effects bills coming in after your death have or similarly any income.

[t327]

maybe mumsnet should put up a guide about this sort of stuff...

[ChablisLover]

You may still have to pay tax on income received after death - or you estate will dependent on your level of income

And don't forget inheritance tax on your estate assets

So yes pay tax up to date of death and sometimes afterwards too

[btwo1]

so how does this whole system work? could someone explain this more...

[RustyBear]

When you die, HMRC will send your executor a form, on which they have to give your income from the beginning of the tax year to the date of your death. Then they will work out whether your estate must pay extra tax or get a rebate. I've just had one for my dad, who died in November.

[t327]

so if someone dies just before the end of the tax year - so there isn't any point in rushing to contact the hmrc in order to avoid a tax return for the tax year after?

[RustyBear]

Depending on where the death is registered, you may not have to tell them yourself at all - most registrars have the 'Tell Us Once' service, where they will inform various Government and Local Authority bodies, including HMRC, pensions, Council tax etc. I registered my dad's death in Plymouth and they had the service -I got the form from HMRC a couple of weeks later.

You might find this webpage useful

[sittinginthesun]

It's fairly simple really. The Executor usually fills in a form called an R27 to the date if death. As most people pay tax either PAYE or by deduction at source (eg bank interest), this form is usually a claim for a refund of overpaid tax.

If the revenue think tax is due, they will issue a tax return to date of death.

After the date of death, the Estate is liable to income tax and capital gains tax, and has its own allowances. If it is a small estate and all tax is deducted at source, then the revenue don't bother with a tax return, but the executor should provide a tax deduction certificate for each beneficiary for their share if the income. This can then be declared on their own tax return.

If it is a large estate, or has untaxed income, then you can ask the revenue to issue a new tax code for the estate and it can fill in its own return.

[Xenia]

It is as sitting says. I did it when my father died. Some income came in after death and we accounted for that.

So if they die in March as you say they pay tax to date of death but if their estate receives income after their death such as taxable pension or self employed income that is taxable too which is why heirs complain it can take so long to get the money but it's because the executors have to be so sure they have paid every last debt and tax due before they start doling out money to the heirs.