PAYE103017 - Individual records: maintain individual details: work item 21 - DOD received - review record (Action Guide)

To clear work item 21 follow steps 1 - 40. This guide is presented as follows.

Initial action Steps 1 - 5
Next action Steps 6 - 13
Action on 12 week B/F Steps 14 - 22
R27 returned Steps 23 - 38
Further action Steps 39 - 40

Initial action

Before proceeding

  • You will need to check whether the record is a TRN and may need merging. See step 1
  • Check that the date of death is verified. See step 2
  • If the date of death is unverified check that the individual is deceased. See steps 3 - 5

The deceased record is a TRN and may need merging

1. Where the work item has been created on a Temporary Reference Number (TRN) take the following action
 
  • Search for a NINO or other TRNs using NPS Trace and Match, TBS and E-Filestore. For guidance on how to search for the correct NINO in NPS see PAYE120015 
 
  • If you trace the correct NINO or duplicate records see SPD 45 and refer the individual accounts to be merged
 
  • Update Contact History in accordance with PAYE105020 including the reference number of the duplicate record identified and the message ‘Deceased case duplicate records identified referred for merge’
 
  • Make a note on the work item of the action taken and BF the work item for 3 days to allow the merge to be completed
     
    Note: Mark the merge referral as high importance in accordance with SPD 45
 
  • If you trace a valid NINO but it is not held on NPS, continue with the action in step 2 (the merge team are unable to upgrade the NINO for a deceased account)
 
  • If you do not trace a NINO or duplicate TRN continue with the action in step 2

If the date of death is verified

2. Review the date of death in the individual summary screen and determine if the date of death is verified or unverified. (When the date of death is verified you cannot amend or delete it, when it is unverified you can amend or delete it)
 
  • If the date of death is verified and an R27 has not been issued continue action in steps 6 - 13

If the date of death is unverified

3. If the date of death is unverified you need to confirm that it is correct before issuing the R27. You are looking for any evidence that confirms the individual is or is not deceased
 
  • Review Contact History
 
    • For any contact from a relative or agent about the individual’s death
 
    • If any notes relate to the issue of the R27
 
    • If there is any contact made to update personal details for example capacity details
 
    • For any contact made by the individual after the recorded date of death
 
  • Review employment summary
 
    • Check if any employments or pensions commenced after date of death
 
    • Check if any employments or pensions are still live
 
    • Review cessation dates on P45(1) to confirm it is same as date of death
 
  • Review P14 summary
 
    • Review if forms P14 have been received for tax year after date of death and also if show Nil pay and tax
 
  • Review COP history
 
    • If the date of death was before NPS launch (June 2009), review COP history for any notes relating to the date of death
 
  • Contact the employer
 
    • Where you are unable to confirm that the unverified date of death is correct from a review of the record or other sources and the date of death is from a P45(1) and the date of notification is not more than 3 months old, contact the employer and confirm that the deceased checkbox on the P45(1) was correct as there has been no other indication to HMRC that the employee is deceased
4. After considering all the data available and you can confirm that the date of death is correct continue action as in steps 6 - 13
5. Where you can not confirm the date of death or you establish the individual is not deceased
 
  • Remove the date of death and deceased indicator
 
  • Update Contact History with the action taken
 
  • Update the work item with details of the action taken and close the work item

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Next action

6. In each case where the date of death is established
 
  • Review the Contact History screen to view notes and to check previous actions taken
 
  • Search for any related open or closed work items using search facility in Work Management see PAYE110036 
 
  • If an R27 has not been issued continue action as in steps 7 - 13
 
  • If an R27 has been issued following the manual input of date of death (DOD), BF the work item for a period of 12 weeks from the date the R27 was issued and then follow the guidance at step 14
7. Review the marriage / civil partnership screen and enter an end date. If appropriate update the spouse / civil partner’s record by changing the status to widowed and entering an end date
  Note: In cases where the spouse is in receipt of married couple’s allowances, after updating the marriage screen, IABD may also need updating to remove the allowance from the CY+1 code.
8. Check to see if there is a live SA indicator on the record in the Indicators screen (PAYE103065). If so, close the work item and refer to the SA Manual, ‘Permanent cessation’ at SAM90000 onwards. If not, continue as follows
9. Check to see if there is a PAYE source CY or CY-1, if none close the work item, otherwise continue as follows
10. Issue manual form R27 and deceased letter OCAD05 from SEES Office Clerical Assistant (OCA) to the personal representative, if known, or if not known for attention of personal representative c/o deceased home address
  Note: Do not issue R27 if individual is clearly NNL. Issue OCAD07 NNL letter from OCA and close the work item
11. Use the work item notes screen to record the action taken
12. BF work item for 12 weeks, see PAYE110060 
13. Update Contact History and make work item note

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Action on 12 week B/F

14. If R27 has been returned, close the work item using the completion reason ‘R27 returned (date) and processed as correspondence following PAYE103017 steps 23 - 38’
  If R27 has not been returned, issue SEES letter OCAD24 enclosing a duplicate form R27 to the personal representative requesting completion of the form, or if the personal representative is not known, for attention of the personal representative c/o the deceased’s home address
15. Where there is no personal representative, close the work item in accordance with PAYE110075 
16. Update Contact History
17. Where we hold details of a personal representative and a R27 has not been received, form 920 should be issued in all cases where the following applies
 
  • The deceased has untaxed interest of over £2,000 in the last full year before death
     
    Or
 
  • The deceased had a total investment income exceeding £10,000 in the last full year before death
18. BF the work item for 8 weeks
19. Update Contact History
20. If no reply is received after 8 weeks, these cases should be submitted to HMRC Trusts Edinburgh to follow up any potential period of administration liability in accordance with TSEM7365. Close the work item in accordance with PAYE110075 
  Notes:
a. Where form R27 / form 920 has not been returned and the individual’s record has a live capacitor, automatic reconciliation will take place at end of year. If a repayment is due, it will be automatically sent to the capacitor. See PAYE93001 
b. If you have any evidence that indicates that the repayment will be incorrect, you should set the ‘inhibit automatic reconciliation’ in accordance with PAYE93015 and make a note in Contact History of your reasons for doing so.
c. Where National Insurance Benefits (NIB) is present in the code, the NIB should be time apportioned in IABD to the date of death in the year of death.
d. Any taxed investment income in IABD in the year of death should be reduced to NIL.
21. Update Contact History
22. Close the work item in accordance with PAYE110075 

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R27 returned

23. Update Contact History to show that R27 has been returned
  Before proceeding, check the Contact History screen to view notes and to check previous actions taken and search for any related open or closed work items using the search facility
  Note: Where further correspondence is required or papers need to be kept together so that there is a coherent history of the case, prepare a folder 133P(X) to control actions taken. For example, where form R27 cannot be processed immediately, a trust is created or period of administration liabilities are indicated.
  Where the R27 is straightforward and can be processed immediately, then a 133P(X) is not necessary
  You do not need to prepare a 133P(X) where the case is clearly NNL
24. If not already done, enter the capacitor details on the Capacitor screen, see SPD 4a which explains how to enter capacitor details
  If a capacitor is held on the record, auto reconciliation will take place after the year end. Ensure NIB is time apportioned to the date of death in the year of death and the end date for NIB is entered in IABD
  Note: Other income captured from the R27 for the year of death, for example taxed interest, will automatically carry forward into the following year through IABD, and will be included in a later year’s reconciliation where a Capacitor is shown on the customer’s record. To prevent this, once the R27 has been captured and any repayment / underpayment issued.
 
  • Where the date of death is CY-1 or earlier you should
 
    • Set the Inhibit Automatic Reconciliation indicator for the year after the year of death
 
  • Where the date of death is CY
 
    • Create work item 238
 
    • BF the work item until 6 April following the date of death
  When the BF is reviewed, the inhibit automatic reconciliation indicator should be set for the year after the date of death
25. If form R27 (or form 920) indicates that a new trust has been created, forward a copy of the notification with a memo to the appropriate Trust Office and update Contact History accordingly
26. Enter all R27 information on IABD. If repayment due and P45 part 1 details received, trigger an in-year reconciliation, see PAYE94010. For CY-1 cases trigger end of year reconciliation, see PAYE93001 
  Notes:
a. Where there is information omitted from the R27, or the R40 claim form, you will find in the vast majority of cases the omission or understatement is purely an oversight by the person who has completed the form (often the widow, widower or civil partner of the deceased). The income may also be overstated. In these circumstances, the omitted or understated / overstated income may be corrected by using the P45, P14 or P11D and the National Insurance Benefit time apportioned to the date of death.
b. Ensure NIB is time apportioned to the date of death in the year of death and the end date for NIB is entered in IABD.
c. Prior to triggering in-year reconciliation, review the Indicators screen and where the Manual Correspondence indicator has been set, unset it. Failure to do so will result in the tax calculation not being sent to the capacitor and the creation of work item 104.
27. If repayment due and P45 part 1 not received, create paper BF for 4 weeks see PAYE105520. If the date of death is more than 4 weeks previous go to step 29
28. Update Contact History
29. If P45 part 1 not received by BF date, issue form P43 and create paper BF for 4 weeks see PAYE105520 
30. Update Contact History
31. On receipt of form P43, enter P43 details and trigger in-year reconciliation, see PAYE94010 
  Note: If form P43 not received after 4 weeks, consider
 
  • Contacting the employer or pension provider for leaving details
     
    Or
 
  • The personal representative for the statement of pension or pay received to the date of death
     
    Or
 
  • Where the date of death is in CY-1 and the P14 has been received using the P14 information instead of the P45 part 1
32. If underpayment to date of death, issue a request for voluntary payment. Follow the steps at PAYE90011 to request the voluntary payment. Guidance at AP4380a in the Assessment Procedures Manual details the fiscal levels at which relevant action should be taken in deceased cases
33. Where a repayment exceeds £5,000, issue form R9 to HMRC Inheritance Tax Nottingham (AP4383)
34. Update Contact History
35. See TSEM7375 for action to take in the post death period. If the estate’s tax affairs are relatively straightforward and the administration has been completed within two calendar years from the date of death, any liability can be dealt with informally under the procedures outlined at TSEM7410. The last known responsible office should deal with the post death period, see TSEM7204
  Note: You should deal with the administration period liability unless one of the following applies
 
  • Probate value is over £2.5 million
     
    Or
 
  • The assets sold exceed £250,000
     
    Or
 
  • Administration period liability exceeds £10,000
     
    Or
 
  • Corporate trustee acting as personal representative
  If any of the above applies, the case should be transferred to HMRC Trusts, Edinburgh, see TSEM7375
  If the estate does not fall into any of the above categories but it is not straightforward, so cannot easily be dealt with under the informal payment procedures, it should be referred to HMRC Trust, Edinburgh to be dealt with
  Where a trust is created the Trust Office has responsibility for dealing with the period of administration, see TSEM7378
  If an individual was a Lloyds Underwriter, submit the case to CAR HNWU Shipley
36. Where you deal with the administration period liability, set up a 133P(X) folder to control future actions taken
37. For SA / PAYE linked cases with agents, see the SA Manual (SAM90011)
38. Where situations arise in which agreement is unlikely or tax is unpaid, the informal payment procedure might prove inappropriate. In such instances submit the case to HMRC Trusts, Edinburgh for advice in accordance with TSEM7414
  Notes:
a. When all liabilities to date of death are finalised, update the individual’s record (Contact History) of the outcome.
b. Make sure that the year following death does not have any entries in IABD.

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Further action

39. If form R27 is received after 12 week BF, follow steps 23 - 38
40. If form 920 is received, follow steps 25 and 35 - 38

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