Calling for any tax expertise out there (please)

[DressDownFriday]

Fil recently died and we are currently sorting out all the finances for mil.

Fil was self employed and retired March 2011. All tax owed was paid when dh rang the tax office at the start of this year. mil had been a partner in the business.

Mil has now received self assessment forms for herself, deceased fil and a joint business one. As far as we are concerned no income other than state pension and a couple of private pensions has been received since March 2011.

Within the forms was a leaflet advising if self assessment was required. There was a list of questions and if the answer was no to any of them (such as, do you received any other income etc) then we were required to ring a number. dh rang the number and he was advised to still complete the forms!

Fil did get a weekly allowance from the government due to his illness being industrial related. Compensation is due to be received and the total amount of allowance paid will be deducted from this. We presumed no tax was paid on this allowance.

Can anyone offer any sort of advice? Why is the self assessment form required.

Many thanks

Sorry about your loss. Self-assessment forms are sent out to people who don't fall into the 'normal' straight PAYE system and claim various allowances or multiple sources of income. Even though your late FIL was up to date at the start of the year they still want to know what, if anything, he earned or received in 2011/2012 tax year. Compensation is not normally taxable, you're right. But as he has a state and a private pension, it should still be filled in as there may well be a tax rebate owing.

If your MIL is interested, I use a product called TaxCalc which makes self-assessment completion very simple and allows it to be filed online. (My retired parents both use it, very happily) One download covers several separate returns

Thanks for your quick reply .

I will have a look at that TaxCalc.

It's very good (not on commission, honest). What I particularly like is that it guides you through the forms, ignoring the sections that don't apply to you and skipping to the ones that do. There are 'wizards' for fiddlier bits. Also, as you fill in the various boxes, it keeps a running total at the top of the screen as to whether HMRC owes you a rebate or if you owe them. Even though I'm on PAYE and my earnings aren't complicated, HMRC always seems to owe me a few hundred and I get credited to my account within days of posting the return. Makes it worth the £25 outlay. :)

it may be as simple as the person filing last year's forms not putting in a ceasation date for the business. this would then have triggered HMRC to close self-assessment for them.

IME when a return has been issued it has to be complete, even if once completed there is no tax to pay.

Treat it as a form filling exercise, get it done early and make sure you chase HMRC to make sure they are taken off of the self assessment system asap. once they have taken them off they should write to you.