TSEM7425 - Deceased persons: informal payments: P254 payslips
Use a separate sub folder 133P(X) for each informal payment case.
Completing P254 payslip
Once you have agreed the amount of the total liability, (see TSEM7413) prepare a payslip P254 (show all of the requested details apart from the amount of tax paid.
Complete the following boxes
- the core district 3 digit number
- the tax year (if more than one year is involved just show the final year)
- the district (taxpayer) reference number. This consists of the P254 electronic storage file number and the allocated consecutive number and
- the taxpayer's full name and address.
Issuing P254 payslip
Send the payslip to the personal representative/agent with an appropriate covering letter. It is not necessary to create a formal charge. If you receive a payment before agreeing the amount, forward it to Debt Management and Banking (DMB), Shipley with the P254 payslip. Notify the payer accordingly.
Use form P254 payslip for any liability of the administration period.
In the covering letter include a reminder to complete the name and address ‘Amount you are paying' box on the payslip. Ask for payment to be made to Debt Management and Banking by the later of
- 30 days after the issue of your letter or
- 31 January following the end of the tax year to which the payment relates.
Put your papers on a six week BF for confirmation from Debt Management and Banking that the tax has been paid. This confirmation is on a form P211(Z).
Payment is made by due date
When you receive confirmation of the payment make a note in your papers and folder 133P(X), and note the P211 electronic storage file. For guidance on how to proceed see PAYE90026.
Payment is not made by due date
If you do not receive confirmation of payment within six weeks either
- re-BF your papers if the latest date of payment has not been reached, (that is 31 January after the end of the year of assessment), or
- send a reminder to the personal representative. Advise him/her that any further delay in making the informal payment will result in the liability being dealt with formally through the Self Assessment system. This may lead to automatic interest and penalty charges being imposed.
If you have still not received confirmation of payment by the end of the following 30 days, submit the papers to HMRC Trusts & Estates Edinburgh with a report of the action taken.
