Tax Returns.

[Bobbyboy]

My brother-in-law passed away in August 2023, and his estate is being managed by the firm that prepared his will.
It appears that no tax returns were filed for 2022-2023 or 2023-2024, which I assumed was being handled by the firm as promised.
Consequently, penalties have accrued due to this oversight.

Who should be responsible for paying these penalties once everything is settled?
It doesn't seem fair for the penalties to come out of his estate when it wasn’t his fault.

[atticus]

The estate is liable. If you think someone else is responsible for the penalties, raise a complaint.

[PallasAthena]

It appears that no tax returns were filed for 2022-2023 or 2023-2024, which I assumed was being handled by the firm as promised.

Check your assumption against the documents appointing the firm who are managing his Estate.

It would appear logical that they are responsible for the tax returns if they are managing the estate so if the documentation says nothing to the contrary ask them for an explanation for why the tax returns have not been submitted to HMRC. Of course if they have submitted the returns but late then they can't argue it isn't part of their role, they need to explain the late submission.

BTW the deadline for submitting 2023-24 online hasn't been reached yet - it's 31st January, end of this month. But they can't submit online if they already submitted a paper form but after the 31 October 2024 deadline. The Estate is liable to HMRC for the penalties but the question for you will be whether you can require the company to reimburse the Estate

Is this firm actually the Executor or have the Executors appointed them to carry out estate management tasks?

[Pezza54]

The executor is responsible for sending HMRC the completed deceased's tax return form by the date set by HMRC and paying any tax due . This form is for income received by the deceased up to the date of their death.
If after death the estate generates more income in excess of £500, the executor should inform HMRC and pay any tax due from the estate
You should query the penalties with the executor and state that you believe the estate is not responsible for paying them

[Bobbyboy]

Hi all,

Thank you for your replies. Yes, they are one of the two appointed executors, myself being the other. Apparently, my brother-in-law appointed this firm to handle probate, hoping to save me the trouble as his estate is rather complicated.

Unfortunately, it has been a nightmare, and I have no idea where we stand. All I know is that his tax affairs are a mess. It appears that this firm has involved another firm to try to sort out the tax situation, and now I am being asked loads of questions to which I have no answers. I passed on all the information I found regarding property, shares, pension, etc., way back in September 2023.

I am 85 years of age and I could well do without all of this hastle.