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Post Info TOPIC: Client passing away


Guru

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Client passing away
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Hi all,

I received a phone call today to inform me that one of my clients had passed away at the weekend, he had opened a small cleaning business in January this year as a Sole Trader and I had completed his accounts up to April 2017.

As far as I am aware the business has no assets or liabilities at the time of his passing, just wanted to get a bit of advice on how to continue, do I just draw up his accounts as normal from April to the beginning of September?

And then how can I submit them without having to wait until the Returns are issued next year?

Sorry for the questions but I have never had to deal with this before and in all honesty never even thought about having to deal with it

Any advice on how to go about filing the final accounts would be greatly appreciated

Cheers 

 

 



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Doug

These are only my opinions of how I see things and therefore should not be taken as advice

Jay


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I think this will help.

https://www.gov.uk/self-assessment-tax-returns/returns-for-someone-who-has-died

 

BW 

Jay



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Master Book-keeper

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Hi Jay
Isnt that link for the executors? Sorry not read it properly, just scanned the title bit.

Hi Doug
My view - you do not have an authority to act now that your client has died as the authority you had died with him. I would try to find out who the executors of the estate are and you may well have to wait until probate. Sounds like a slim chance, but they may try to sell the business. If you are required to finalise matters you will need the authority of the executors (plus ID them, get copy of the relevant paperwork in the usual way).

Happy to be corrected

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 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position



Guru

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Jay wrote:

I think this will help.

https://www.gov.uk/self-assessment-tax-returns/returns-for-someone-who-has-died


Hi Jay

Thanks for the link, but as usual with HMRC you think that you are reading the correct information for what you want but it turns out not to be  

Hi Joanne

The link Jay gave does imply that I would be able to file the return on the deceased behalf but after reading your post I gave the HMRC agents helpline a ring who then passed me onto the bereavement section who after consulting their guidance said the same as you that my authority died with my client and now it would be down to the executors to either reappoint me or to appoint someone else 

Thank you both for your help 



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Doug

These are only my opinions of how I see things and therefore should not be taken as advice



Master Book-keeper

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Typed same as you Joanne earlier then forgot to send it.

Hi Doug, on this occasion HMRC are right. 



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John 

 

 

 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.



Guru

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Hi John, thanks for confirmation

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Doug

These are only my opinions of how I see things and therefore should not be taken as advice



Guru

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Cheshire wrote:


My view - you do not have an authority to act now that your client has died as the authority you had died with him. I would try to find out who the executors of the estate are and you may well have to wait until probate. Sounds like a slim chance, but they may try to sell the business. If you are required to finalise matters you will need the authority of the executors (plus ID them, get copy of the relevant paperwork in the usual way)


I was going to try and contact the executors this week but was wondering if they do want me to finalise the accounts for the deceased if anyone knew the correct procedure of going about this, usually I would apply to HMRC online to act for the client by supplying their address and UTR number but what would I need from the executors as in way of authority to enable me to deal with HMRC and submit the final accounts?  

 



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Doug

These are only my opinions of how I see things and therefore should not be taken as advice



Master Book-keeper

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If there was a will then one of the named executors will become the personal representative and they should have already informed HMRC of the death. They can arrange for online submission/get UTR as usual - they are best speaking to the bereavement helpline, so then you would file in the usual way. You will need to find out if they are selling the business, as the business itself doesnt die with the sole trader.

__________________

 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position



Guru

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Hi Joanne

As far as I am aware there is not much of a business to sell but I will ask just to make sure as I have not had a look at the accounts since April and things may have changed since then, this is providing that they do wish to reappoint me

Thanks for your help

Cheers

 

 



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Doug

These are only my opinions of how I see things and therefore should not be taken as advice



Guru

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Hi Joanne

Found out that the widow is the named executor (personal representative) who does want me to finalise the accounts so should I now be issuing a new engagement letter to her?

Cheers



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Doug

These are only my opinions of how I see things and therefore should not be taken as advice



Master Book-keeper

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Hi Doug
Yes I would issue the engagement letter to her, plus as well as your usual ID I would get copy of the death certificate and the paperwork showing she is appointed executor. Sounds like this will be sorted easily, so that's good.

__________________

 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position

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