Understand the Situation:
Before initiating the claim process, it’s essential to have a clear understanding of the deceased person’s financial affairs. This includes knowing whether they were registered for Self Assessment, the nature of their income, and any taxes they may have overpaid.
Contact HM Revenue and Customs (HMRC):
Reach out to HMRC as soon as possible to inform them of the individual’s death. You can do this by phone or in writing. You may be asked to provide information such as the deceased person’s National Insurance number, date of death, and details about their estate.
Obtain the Grant of Probate:
In most cases, you will need to obtain the Grant of Probate (or Letters of Administration if there is no will) before you can deal with the deceased person’s financial affairs. This legal document confirms the executor’s authority to administer the estate. You may need to present this document when dealing with financial institutions and HMRC.
Check for Overpaid Taxes:
Review the deceased person’s financial records to identify any overpaid taxes. This could include overpaid Income Tax, Capital Gains Tax, or any other relevant taxes. The overpayment might be a result of the individual making payments on account that exceeded their actual tax liability.
Complete and Submit Form R27:
To claim a Self Assessment repayment on behalf of the deceased person, you will likely need to complete Form R27. This form is used to report the income of the deceased person up to the date of death. You can obtain this form from the HMRC website or by contacting HMRC directly.
Provide Supporting Documents:
Along with Form R27, you may need to submit supporting documents, such as a copy of the Grant of Probate, details of the deceased person’s income, and any other relevant documentation. Ensure that all information provided is accurate and complete.
Submit the Claim:
Send the completed Form R27 and supporting documents to the address specified on the form. If you have any questions or concerns, you can contact HMRC for assistance.
Wait for Processing:
The processing time for a claim can vary, but HMRC will notify you of the outcome once the claim has been processed. If the claim is approved, the repayment will typically be issued to the deceased person’s estate.
Distribute Funds:
Once the repayment is received, it can be distributed according to the deceased person’s will or the rules of intestacy if there is no will.
Keep Records:
Maintain thorough records of all communication with HMRC, as well as copies of submitted forms and supporting documents. These records may be needed for future reference or audits.
It’s important to note that tax laws and procedures can change, so it’s advisable to check the latest guidance on the HMRC website or consult with a tax professional for the most up-to-date information tailored to your specific situation.