Tax guidance and support for Executors of a deceased’s Estate

Full service management of self assessment tax return for Executors and Personal Representatives

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A helping hand

Managing tax issues as an Executor of Estates can be challenging and complex. Klarity Tax can assist to try to ensure that the process is stress free and provide peace of mind that all tax issues are completed correctly and as swiftly as possible.

 

Our helping hand service provides you access to our professional team of tax specialists, who specialise in the UK personal tax elements of dealing with the deceased Estates and calculating the tax liabilities that might arise. Their skills will ensure that the deceased Estates are finalised efficiently, meeting all HMRC requirements and finalising the Estates tax affairs accurately.

 

Our team provides one-to-one support to help guide you through the process. This is either in dealing with the tax position to date of death or the formal/ informal procedure in an Administration Period, declaring income to HM Revenue & Custom accurately as the position is concluded. This will ensure that you as Executor or Personal Representative are not left with any unexpected liabilities or fines

Managing the Estates tax affairs 

Use our ‘helping hand service’ to guide and support you through HM Revenue & Customs tax complexities to ensure that you account for tax requirements correctly and on time.

 

Most income is now paid gross without the deduction of tax at source. As an Executor / Personal Representative of someone who has died you need to account for tax to HM Revenue & Customs on the income received to the point of death and during any Administration Period, while dealing with the Estate of the deceased.

HM Revenue & Customs to date of death

Often when someone dies, the tax taken by HM Revenue & Customs during the year of death, is more than should be paid, so it is important that the tax position is looked at and any applicable refund from HM Revenue & Customs, is repaid to the deceased Estate.

 

If the deceased Estate is not distributed/passed straight away to the beneficiaries, then the period between the date of death and the distribution of the Estate (Administration Period) often has to be reported to HM Revenue & Customs.

HM Revenue & Customs ‘formal’ Administration Period procedure applies if:

  • The estate is worth more than £2.5 million at the date of death

  • In the current tax year, more than £500,000 came from the sale of the Estate’s assets by administrators or executors

  • The total Income Tax and Capital Gains Tax due for the Administration Period is more than £10,000

HM Revenue & Customs ‘Informal’ Administration Period procedure applies if:

  • Earnings of more than £500 interest on savings during the Administration Period but less than £10,000 Income Tax and Capital Gains

  • Earnings less than £500,000 came from the sale of Estate’s assets in the current year

  • The Estate is worth less than £2.5million at the date of death

As part of the helping hand service, Klarity Tax manages the following for the Executors:

  • Review the requirements and advise accordingly

  • Check the current tax position with HM Revenue & Customs. This is important as interest may be charged on any outstanding amount until it is paid

  • Complete the UK Tax Return as necessary

  • Complete the Tax Repayment Claim Form where applicable

  • Process appropriately, to try to ensure HM Revenue & Customs requirements and associated deadlines are met

  • Keep you up to date on progress

  • Handle relevant correspondence with HM Revenue & Customs

Managing the Estates Tax Return

Once you have decided to use our Tax Return Service you will receive a welcome pack confirming your registration and payment for the service. It will include:

  • A Registration form for HM Revenue & Customs authorisation (64-8) that will advise HMRC that we are acting on the deceased behalf

  • A ‘details of deceased’ fact find (including a checklist of all items and information you will need to provide to us)

  • Our Terms and Conditions

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