Dealing with HMRC When Someone Dies UK (2026): Tax, Self-Assessment & Tell Us Once

HMRC is notified of a death through the Tell Us Once service (gov.uk/after-a-death/organisations-you-need-to-contact-and-tell-us-once), which is offered to the next of kin or executor at the register office when the death is registered. Tell Us Once passes the death notification simultaneously to: HMRC (for both income tax/PAYE and National Insurance); the Department for Work and Pensions (DWP) — for State Pension, benefits, and tax credits; the Driver and Vehicle Licensing Agency (DVLA) — for the deceased's driving licence; the Passport Office — for the passport; local councils — for Council Tax and any council benefits; the Electoral Register; Veterans UK — if the deceased was a war pension recipient. Tell Us Once is optional but strongly recommended — it saves the executor from separately contacting each department. If the executor cannot use Tell Us Once (for example, the death occurred abroad or was registered in certain areas where the service is not yet available), HMRC can be notified directly: (1) HMRC Bereavement Helpline: 0300 200 3300 for income tax/PAYE/NIC enquiries; (2) HMRC Inheritance Tax: 0300 123 1072 (a separate team — see below). HMRC will acknowledge the notification and write to the executor with a reference number for the estate. The executor should also write to HMRC at the deceased's tax office (shown on the deceased's most recent tax correspondence) to formally notify of the death and request that the income tax affairs be reviewed.

If the deceased was registered for self-assessment, a final self-assessment tax return must be filed for the period from 6 April to the date of death. This is called the 'year of death' return, and it covers any income received, capital gains made, and reliefs claimed up to and including the day of death. Key deadlines: (1) Online filing: 31 January after the end of the tax year in which the death occurred. For a death in 2025/26 (which ends 5 April 2026), the online filing deadline is 31 January 2027; (2) Paper filing: 31 October after the end of the tax year. The executor or administrator has the same authority as the deceased to file the final return and to give or revoke HMRC authorisations. The executor will need access to the deceased's Government Gateway account (or register on their behalf), or instruct an accountant or agent. Income to declare on the final return includes: employment income (P60 and P45); pension income; rental income; self-employment profits; savings interest; dividends; capital gains on disposals made during the tax year of death. If the deceased usually filed a tax return and has not yet filed for a previous year, those outstanding returns must also be completed. If the deceased was NOT registered for self-assessment but had income that would have required a return (for example, rental income over £2,500, capital gains above the annual exempt amount, or income over £100,000), the executor may need to register the estate for self-assessment to settle outstanding income tax liabilities.

PAYE (Pay As You Earn) and National Insurance Contributions (NIC) cease on death: (1) PAYE: the employer is notified of the death (usually via Tell Us Once) and stops deducting income tax through PAYE. The employer issues a P45 for the period up to the date of death and sends copies to HMRC. Any income tax deducted under PAYE in the period is reported on the final P60 or P45 and taken into account in the final tax calculation. Overpaid income tax in the tax year of death (for example, because PAYE was calculated on the assumption of a full year's income but the deceased only received a partial year) is usually refunded to the estate; (2) National Insurance: NIC ceases at death — there is no NIC on the final month's salary or other income received in the period of death. The estate does not pay NIC; (3) Income tax refund: HMRC commonly issues a tax refund for the final year because the PAYE coding assumes income for the full tax year but the deceased only received income up to the date of death, resulting in over-deduction. The executor should file the final return or contact HMRC to request the refund — HMRC will calculate it and issue a cheque or bank transfer to the estate. Any income tax, NIC, or PAYE arrears owed by the deceased at the date of death are unsecured debts of the estate — payable from estate assets before distribution to beneficiaries.

HMRC Inheritance Tax is a separate team from the HMRC income tax and PAYE teams, and the two operate independently. Executors frequently become confused when dealing with both simultaneously — a response from HMRC Inheritance Tax does not confirm that the income tax affairs are settled, and vice versa. HMRC Inheritance Tax (IHT team): handles all matters relating to the calculation, assessment, and payment of inheritance tax on the estate; phone 0300 123 1072; address: Inheritance Tax, BX9 1HT; manages the IHT400 return and all supplementary schedules; issues the D18 receipt confirming IHT payment (required for the probate application); opens and manages compliance enquiries into IHT valuations; issues the clearance certificate (Form IHT30) confirming no further IHT will be claimed. HMRC income tax: handles the deceased's personal income tax history, final self-assessment, PAYE, NIC, and tax repayments; phone 0300 200 3300 (bereavement helpline); handles the SA900 trust and estate income tax return for the administration period. These are two entirely separate processes. An executor dealing with a substantial estate will typically: (1) notify HMRC income tax via Tell Us Once and file the final self-assessment; (2) separately engage with HMRC Inheritance Tax via the IHT400 return and IHT payment process. Completing one does not discharge the other. Instructing an accountant to handle both processes simultaneously and in a coordinated way is strongly recommended for complex estates.

During the period between the death and the final distribution of the estate to beneficiaries (the 'administration period'), the executor acts as personal representative and is responsible for the estate's income tax obligations. Income tax during administration: (1) Income received by the estate: all income received by the estate after the date of death (dividends, rental income, savings interest, pension arrears, income from business carried on by the estate) is subject to income tax. Personal representatives pay income tax at 20% on non-dividend income and 8.75% on dividend income. There is no personal allowance for the estate — income tax starts at £0; (2) SA900 Trust and Estate Tax Return: the executor must register the estate for income tax and file an SA900 annually if the estate has income above de minimis levels (currently, an estate must file if total income exceeds £500 and the administration period spans more than one tax year, or if total income in any year exceeds £2,500). The SA900 is filed annually by 31 January (online) for each tax year during which the estate has income. Where the administration is completed in a single tax year, the income may be reported informally to HMRC without filing an SA900; (3) Capital gains by the estate: personal representatives pay CGT on gains during the administration period at 24% (residential property) or 20% (other assets) with the annual exempt amount (£3,000) available in the first tax year of administration only; (4) Income paid to beneficiaries: if the estate distributes income to residuary beneficiaries, they receive an 'estate income' certificate (R185) that allows them to reclaim any higher-rate tax over-deducted or to set income against their personal allowance if it was not fully used.

Any income tax, NIC, VAT, or other tax liabilities outstanding at the date of death become unsecured debts of the estate — the executor must pay them from estate assets before distributing anything to beneficiaries. HMRC ranks as an ordinary unsecured creditor in the order of payment (below secured creditors, funeral/testamentary expenses, and preferential debts). Key points: (1) Penalties and interest: HMRC penalties and interest that have accrued before the date of death survive the death and are estate debts — the executor must deal with them. However, penalties and late filing surcharges that relate to periods after the date of death (for example, a penalty for the estate failing to file the final self-assessment on time) are owed by the executor in their capacity as personal representative, and may in some circumstances be appealed; (2) Appealing HMRC decisions: the executor stands in the deceased's shoes and has the same rights as the deceased to appeal HMRC decisions, request time to pay, or challenge assessments. If the deceased had a tax dispute in progress at the time of death, the executor can continue that appeal; (3) Time to pay: if the estate does not have liquid funds to pay a tax debt immediately (for example, the assets are primarily property), the executor can approach HMRC to agree a time to pay arrangement pending the sale of assets; (4) Outstanding returns: if the deceased had outstanding tax returns for multiple years, HMRC may issue automatic penalties. The executor can apply to reduce or cancel penalties by explaining the circumstances of the death — HMRC has a general policy of waiving penalties in the period immediately following a death; (5) VAT: if the deceased was VAT-registered (as a sole trader or landlord), the executor must deregister the business for VAT and file a final VAT return covering up to the date of cessation of trading or death (whichever comes first).