One of my sole-trader clients has passed away suddenly and the family will be passing me the records they can find to complete 20/21 which should be straightforward. My brain is now overthinking what to do with 21/22? Any guidance would be much appreciated.
Thank you
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Janet
They keep making the system idiot proof but then make bigger and better idiots!
Not something that I have dealt with myself as I tend to deal only with large multinationals but, a few thoughts...
firstly, sorry that you have lost a client.... That came out wrong but you know what I mean.
Is there a succession plan in place? Does anyone inherit the business? Were there employee's?
Any assets will be measured at / written down to NRV rather than depreciated cost.
Should this not all be in the hands of solicitors who will be distributing the estate? Really it should be them telling you what they need and I wouldn't like to tread on their toes.
I look forwards to hopefully reading better, more complete responses than mine but at least wanted to get the ball rolling.
Good luck,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Not something that I have dealt with myself as I tend to deal only with large multinationals but, a few thoughts...
firstly, sorry that you have lost a client.... That came out wrong but you know what I mean.
Is there a succession plan in place? Does anyone inherit the business? Were there employee's?
Any assets will be measured at / written down to NRV rather than depreciated cost.
Should this not all be in the hands of solicitors who will be distributing the estate? Really it should be them telling you what they need and I wouldn't like to tread on their toes.
I look forwards to hopefully reading better, more complete responses than mine but at least wanted to get the ball rolling.
Good luck,
Shaun.
HI Shaun
He was my favourite client too!! A successful one man band with no succession plan (his son's have other careers).
I was so shocked when they called my mind went blank! I managed to tell them to visit the bank, contact the companies who have DD's on the account and if they could find his workplan contact people who are expecting him to complete their projects. When I spoke to him in May he had a huge list to catch up with after last years restrictions.
The solicitor is a good shout, I'll keep that in mind when they get back in touch and NRV for the assets.
Thanks for your response
__________________
Janet
They keep making the system idiot proof but then make bigger and better idiots!
Has the family informed HMRC that he has died? If not then they need to do so and once they have your agent status for the client will no longer be valid, and it will be up to he Executor to appoint you if they want you to complete the 20-21 tax return.
This thread is relevant I think for your situation. Scroll down to Wanderers post on 8th Jan 03:52 which I hope will help you.
Has the family informed HMRC that he has died? If not then they need to do so and once they have your agent status for the client will no longer be valid, and it will be up to he Executor to appoint you if they want you to complete the 20-21 tax return.
This thread is relevant I think for your situation. Scroll down to Wanderers post on 8th Jan 03:52 which I hope will help you.
That link is really useful thank you. I didn't find any information on gov.uk to tell me my agent status would end. Getting that re-instated is more important than worrying about the returns etc!
The family used the 'Tell me once' system when they registered the death, it hasn't filtered through to my account yet. I can let them know what will be required once this happens.
Thanks again.
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Janet
They keep making the system idiot proof but then make bigger and better idiots!
Why would gov.uk tell you that. It's common sense. Legal entity changed, so agent status revoked and need new. As is the fact you don't deal with family members, you deal with the person/people authorised to deal with the estate. That includes doing the usual MLR and new LOE.
Why would gov.uk tell you that. It's common sense. Legal entity changed, so agent status revoked and need new. As is the fact you don't deal with family members, you deal with the person/people authorised to deal with the estate. That includes doing the usual MLR and new LOE.
Thank you for your response Chaz.
New paperwork is being put in place and the family member is the executor.
__________________
Janet
They keep making the system idiot proof but then make bigger and better idiots!
I had this happen to me the year before last when a sole trader died suddenly.
When the family registered the death the registrars automatically contact the relevant departments such as DWP , passport offfice and DVLA as well HMRC.
HMRC closed down his gateway account and automatically cancelled my agent authorisation so I couldn't do anything more . The family were sent a paper tax return form to fill in and send off once completed and then a few weeks later they were sent a final letter with the amunt of tax due to pay.
