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DMBM585280 | Pre-enforcement: consider the defaulter: deceased customers: no probate / confirmation

From HM Revenue & Customs · Debt Management and Banking Manual

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If the deceased was a sole trader and there is evidence of succession, that is trade is continuing/there are employees, contact the business address to find out:

  • who is continuing to trade

  • if the employees are now employed by the new business

  • when was the business sold/transferred

  • their current PAYE/ VAT reference number.

If it is a succession, only the debt to the date of the sale/transfer will be due from the deceased’s estate. Advise Customer Ops/ DTO if a new PAYE/VAT record is required.

For all sole liabilities, including those of a deceased sole trader where there is no evidence of the business continuing

£5,000 or less outstanding and/or insufficient assets

If either:

  • there is potentially less than £5,000 outstanding

  • you have clear evidence, preferably in writing, that probate/confirmation will not be sought because there are no estate assets

  • there is no jointly held property

and you are satisfied that further action will not be worthwhile:

  • do not pursue the estate for outstanding returns or for payment

  • complete a pro forma return as nil or equal to the amount of the total payments on record

  • make the record dormant/cease the employer record

  • put your reason for closure on SA notes

  • remit the debt Type 2 as in DMBM735030.

More than £5,000 and potential assets

If you suspect there may be assets, for instance where either:

  • income before death was high

  • you have confirmed that there were assets

  • a property was owned or jointly owned

  • check the deceased’s tax records and any other available source of information such as Customer Ops (for instance, if a statement of assets was provided with an investigation agreement), Tax Credit Office, DTO/ EEC team at Liverpool, Experian, or the former agent

  • contact the person who provided the initial information.

If you find out that:

  • the estate is in funds

  • there was a solely or jointly owned property

consider further action, including obtaining an insolvency administration order against the estate; see DMBM585285.