Do I pay my late husband’s self assess tax bill?

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My husband died in April.

he left behind a small business with debts and no savings/pension/life insurance/etc

All bank accounts overdrawn.

We had no joint finances everything is in his name.

His business only ‘made a living’. With my wages just scraping by on rent and bills.

His accountant asked for a year’s bank statements and now I’ve received an email asking for my signature to submit a self assessment.

I don’t know anything about business at all, never helped him with any of it.

I am liable for his tax bill I’m guessing? There’s no savings to pay it so will HMRC potentially deduct from my Universal Credit? (I was made unexpectedly redundant the week before he died so have just claimed UC for myself and two children).

I don’t know what the tax bill will be yet, just waiting on some advice before I sign this form from the accountant.

I would be hugely grateful for your opinions.

There’s so much admin and other worries to cope with at the moment (potential eviction because only 1 tenant here now, my new health issue, the colossal admin side of death, the kids trying to cope with his loss, the vehicles, winding down an almost bankrupt business, … I’m at breaking point and now the tax bill thing too.

thankyou, anyone, for advice, I’m so grateful

No you are not responsible for the debts of your husband.

https://www.gov.uk/self-assessment-tax-returns/returns-for-someone-who-has-died

Have a read through of this. HMRC also have a bereavement helpline, which you'll find on this specific page.

I’m not sure at all on liability but the next self assessment return isn’t due until January so I wouldn’t rush to sign anything either way and let them know you will look into this and come back to them.

Im so sorry for your loss. From what you have posted, there is unlikely to be a tax bill. Citizens advice should be able to help guide you through it (the accountant should also be able to help (but will probably charge for this)).

First of all, sorry for your loss💐

If there was no money and no assets in your late husband’s estate, you are not liable for his debts.

What exactly is the form you are being asked to sign? You can not be signing a
self assessment for your late husband as once someone has passed away there can be no self assessment. Are these executor’s accounts to be submitted to HMRC? Are they business accounts? Were you a director of the company? Can you ask the accountant to ne more precise?

It sounds as if you are quite overwhelmed at the moment. Do you have a friend who could help you out? I do not want to get your hopes up but there could be a tax rebate if the business is no longer running.

No, you are not liable. The estate is, but if there is nothing in it, then the debt is wiped. So sorry for your loss.

Hi
no I’m not involved with his business at all I’m not a director or anything like that he was a sole trader not limited company it was a very small business.

The accountant said he needs to prepare a final statement for self assessment so I guess this what the email is asking for my signature for.

In theory, but in fact I am, because there are overdrawn bank accounts that his bank is asking for my plan on clearing and a credit card bill that is already being progressed towards a repayment plan as I am my husband’s estate executor or whatever you call it

I believe however all of these might be cleared because they are only in his name and there’s zero money in his estate

Ask the accountant.
Ask accountant all these questions.
Accountant should sort this out for you. Or refer you to a a death/probate accountant for advice.
Are you executor?

Presumably you're executor and are signing in that capacity, rather than as his wife?

Yes, the tax return needs to be submitted. No you are jot responsible for his debts. Anything he did leave goes first to funeral expenses then to pay debts.

OK, so you are signing as personal representative or executor.

But you need to read and check the document you will be signing.

Rest assured that if you were not part of the company you can not be held liable for any debts.

Yes, the bank will ask the estate to pay and the executor would organise that, if there is any money, but if there's isn't, respond to say that. You as his wife are not responsible (unless any of the accounts were in joint names).

They can't ask for a repayment plan where the debtor is deceased. They can ask the estate to pay where there is money in the estate, but if there isn't, they won't get their money.

Ask the accountant to explain the process and how things work now he’s deceased, and that you won’t be signing until you understand what you’re being asked to sign.

I think you need a solicitor, but you are categorically not responsible for his debts unless they are joint.

OP doesn't need a solicitor to deal with correspondence from the banks or tax authorities. She just needs to write back, as executor, explaining that there is no money in the estate to pay any debts.

I'm sorry for your recent loss.

Did your husband own the car? If there is anything owned either by him outright they would be part of his estate. Because he was self-employed his business debts are personal debts but they can only be offset against assets he owned (outright or jointly).

Assuming your executor you are responsible for ensuring his final tax return and other probate matters are completed and while there are timeframes for these none are this quick so use the links others have given to find out what you need to do. The accountant is probably trying to be helpful but may not have the full picture so don't be pushed into signing anything you don't fully understand.

Make sure your income is going into an account in your name.

They are asking the estate to clear it. Not you personally.

My dad died with debt. I saw a brilliant probate solicitor who sorted it all out. He did own a car. So I sold that (we buy any car.com) and she took her fee from that.

She had to write to all of the debtors, put notices in a gazette. No debts were cleared, as his estate couldn't pay them.

So I'd try and find a good probate solicitor. Sorry for your loss. Not what you need, all of this on top of everything else.

Debts die with the deceased. Creditors can only claim on the Estate of the deceased. If there are no assets then the debts get written off. You are not personally responsible for debts in your husband's sole name. As an executor though you need to prepare a statement of assets to show that there is no money to settle the accounts.
As an executor you would be required to finalise his tax affairs. Sounds like the accountant is doing this and just wants your signature (as executor) to submit final accounts.

I'm sorry for your loss.