AP4380(a) - Deceased Persons: Non - SA cases. PAYE liability to date of death

Repayment Likely

Issue R27 to personal representative and BF papers for 12 weeks

• R27 received

• • Trigger in year reconciliation to repay personal representative (PAYE94010)

• R27 not received after BF period

• • Issue letter to personal representative to say repayment likely but completed R27 is needed
  • Clear ’reconciled balanced’ (PAYE90000)

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Underpayment Likely

Issue R27 to personal representative and BF for 12 weeks

R27 received

• Underpayment is less than £50 clear ‘reconciled balanced’ (PAYE90000)and advise personal representative no further action
• Underpayment over £50 prepare informal calculation and issue P254(A or B)(Z) to personal representative requesting voluntary payment (PAYE90011) and BF for 12 weeks

If P211 received

• Make contact history note and note P211 establishment file

If P211 not received

• If the underpayment is less than £250, make a Contact History note and remit the underpayment
• if underpayment £251 to £1250 issue reminder and say Self Assessment Tax Return may have to be issued if payment not received
• if over £1250 issue reminder and say Self Assessment Tax Return will be issued if payment is not received.

Note: The issue of a Self Assessment Tax Return to date of death should be the last resort based on the circumstances of the case and the level of income. An unpaid voluntary payment of £251 to £1250 must be submitted to an experienced officer to consider if remission of the tax underpaid is appropriate based on the information held on the R27.

(The experienced officer will then be able to consider if pursuit of the debt is worthwhile bearing in mind the guidance held in the Debt Management and Banking Manual at DMBM585250)

R27 not received after 12 week BF period

• If underpayment is less than £250 clear ‘reconciled balanced’ (PAYE90000)
• If underpayment is likely to be £251 to £1250 submit to an experienced officer to consider issuing Self Assessment Tax Return to date of death.
• If underpayment is likely to be over £1250 issue Self Assessment Tax Return

Note: The fiscal lower limit (or tolerance) was £300 for the years 2007-08, 2008-09 and 2009-10, this was a temporary measure and reverted to £50 from 5 April 2011

(Further guidance is available in the PAYE on line Manual, PAYE90011 and PAYE93027 and the Debt Management and Banking Manual DMBM585250)