How to Tell HMRC That Someone Has Died: A Step-by-Step Guide

How to Tell HMRC That Someone Has Died: A Step-by-Step Guide

Among the many organisations you need to notify after someone dies, HMRC is one of the most important and, for many people, one of the most daunting. There are tax obligations that need to be settled, and getting things right early can prevent problems further down the line.

The good news is that the process is more straightforward than it might seem. This guide walks you through exactly what to do, step by step.

Who Needs to Notify HMRC?

The responsibility falls to the executor of the will or the administrator of the estate (if there is no will). If you are the next of kin but have not yet been formally appointed, you can still begin the notification process.

In many cases, if you use the government's "Tell Us Once" service when registering the death, HMRC will be notified automatically. However, Tell Us Once does not cover everything, and there are situations where you will still need to contact HMRC directly.

Step 1: Use the "Tell Us Once" Service

When you register the death at the local register office, the registrar will usually offer you the Tell Us Once service. This sends the death notification to multiple government departments in one go, including:

• HMRC
• DWP (Department for Work and Pensions)
• The Passport Office
• DVLA
• Local council (for council tax and electoral register)

This service is free and can save you a significant amount of time. You will receive a unique reference number to use online or over the phone to complete the process.

Important: Tell Us Once notifies HMRC of the death, but it does not settle the deceased's tax affairs. That is a separate process that you, as the executor, will need to handle.

Step 2: Contact the HMRC Bereavement Helpline

If Tell Us Once is not available in your area, or if you need to discuss the deceased's tax affairs in detail, contact the HMRC Bereavement and Deceased helpline directly:

• Phone: 0300 200 3300
• Opening hours: Monday to Friday, 8am to 6pm
• What you will need: the deceased's full name, date of birth, date of death, National Insurance number (if known), and your own details as the person managing the estate

HMRC staff on this line are accustomed to dealing with bereaved callers and will guide you through the next steps based on the deceased's specific tax situation.

Step 3: Understand the Deceased's Tax Position

The tax obligations that need settling depend on the deceased's circumstances. The main areas are:

Income Tax (PAYE)

If the deceased was employed or receiving a pension, their employer or pension provider will usually have been deducting income tax through PAYE (Pay As You Earn). HMRC will calculate whether any tax is owed or whether a refund is due for the period from the start of the tax year to the date of death.

You do not usually need to do anything beyond notifying HMRC. They will write to you with a calculation, known as a P800 or Simple Assessment, once they have the information from the employer or pension provider.

Self-Assessment

If the deceased was self-employed, a company director, had rental income, or was registered for self-assessment for any other reason, you will need to file a final tax return on their behalf. This covers the period from 6 April (the start of the tax year) to the date of death.

The deadline for this final return is the later of:

• The normal 31 January deadline for that tax year, or
• 12 months after the end of the month in which the death occurred

HMRC can provide the deceased's self-assessment login details to the executor if needed. If you are unsure how to complete the return, consider instructing an accountant, as the cost can be paid from the estate.

Tax on the Estate's Income

After the date of death, the estate itself may generate income. For example, if the estate includes rental property, savings accounts earning interest, or share dividends, this income is taxable. If the estate's income tax liability exceeds £10,000, or if the administration period lasts more than two years, you may need to register the estate for self-assessment and file returns on its behalf.

For smaller estates with straightforward tax affairs, HMRC may handle things through informal procedures without requiring a separate return.

Step 4: Deal with Any Outstanding Tax Debts

If the deceased owed tax to HMRC at the time of death, this becomes a debt of the estate. It is paid from the estate's assets in the normal order of priority for estate debts. You do not need to pay it from your own funds.

If HMRC owes the deceased a tax refund, this will be paid into the estate. HMRC will send the refund to the executor or administrator once the tax position has been finalised.

Step 5: Handle Specific Situations

State Pension

If the deceased was receiving the State Pension, the DWP handles pension payments, not HMRC. However, the State Pension is taxable income, so HMRC needs to account for it in the final tax calculation. Tell Us Once normally triggers both the DWP and HMRC notifications.

Private Pensions

Private pension payments will stop when the pension provider is notified. Any tax implications of pension death benefits (such as lump sum payments to beneficiaries) depend on the type of pension and the age of the deceased. Pension providers can advise on this, and HMRC may adjust the tax codes of beneficiaries receiving ongoing pension payments.

ISAs

ISAs lose their tax-free status on the date of death (though an Additional Permitted Subscription allowance may be available to a surviving spouse or civil partner). Interest earned on ISA funds after the date of death is taxable as estate income.

Premium Bonds

Premium Bonds can remain in the draw for 12 months after death. Any prizes won after the date of death are not taxable and are paid to the estate.

Capital Gains Tax

There is no Capital Gains Tax on assets at the date of death. Instead, the beneficiary inherits the assets at their market value on the date of death. However, if the executor sells assets during the administration period (for example, selling a property to distribute the proceeds), Capital Gains Tax may be due on any increase in value between the date of death and the date of sale. The estate has its own annual Capital Gains Tax exemption for the tax year in which the death occurred and the following two tax years.

Step 6: Keep Records

Throughout this process, keep clear records of:

• All correspondence with HMRC
• The deceased's tax documents (P60s, P45s, self-assessment returns, pension statements)
• Any income received by the estate
• Payments made from the estate for tax liabilities

Good record-keeping protects you as the executor and makes the final estate accounts much easier to prepare.

Common Questions

Do I need to notify HMRC separately if I used Tell Us Once? Not usually for the basic death notification. But you will still need to contact HMRC directly if the deceased was self-employed, had complex tax affairs, or if you need to discuss the estate's tax position.

How long does HMRC take to respond? Allow several weeks for HMRC to process the notification and issue any tax calculations. During busy periods it can take longer. If you have not heard anything after eight weeks, follow up with the bereavement helpline.

What if I do not know the deceased's National Insurance number? Check payslips, P60s, letters from HMRC or DWP, or the deceased's personal documents. HMRC can also trace the record using other details such as full name, date of birth, and last known address.

Can I do all of this online? Some elements can be managed online through the Government Gateway, but much of the bereavement process with HMRC is still handled by phone and post. HMRC has been gradually improving its digital services, but personal contact remains the most reliable route for complex situations.

Do Not Let It Overwhelm You

Dealing with HMRC after a death is one of many administrative tasks that can feel relentless when you are also trying to grieve. Remember that there is no expectation for you to handle everything immediately. HMRC is generally understanding of the circumstances and will work with you on reasonable timelines.

If you are managing an estate and trying to keep track of everything from tax to utilities to property, tools like GetPassage can help you stay organised and ensure nothing important gets missed.

Take it one step at a time. You are doing something difficult, and you are doing it for someone you cared about. That counts for a great deal.