The Book-keepers Forum (BKF)

Post Info TOPIC: When a sole trader dies


Senior Member

Status: Offline
Posts: 159
Date:
When a sole trader dies


Hi Everyone

One of my sole-trader clients has passed away suddenly and the family will be passing me the records they can find to complete 20/21 which should be straightforward. My brain is now overthinking what to do with 21/22? Any guidance would be much appreciated.

Thank you



__________________

Janet

They keep making the system idiot proof but then make bigger and better idiots!



Forum Moderator & Expert

Status: Offline
Posts: 11916
Date:

Hi Janet,

Not something that I have dealt with myself as I tend to deal only with large multinationals but, a few thoughts...

firstly, sorry that you have lost a client.... That came out wrong but you know what I mean.

Is there a succession plan in place? Does anyone inherit the business? Were there employee's?

Any assets will be measured at / written down to NRV rather than depreciated cost.

Should this not all be in the hands of solicitors who will be distributing the estate? Really it should be them telling you what they need and I wouldn't like to tread on their toes.

I look forwards to hopefully reading better, more complete responses than mine but at least wanted to get the ball rolling.

Good luck,

Shaun.

__________________

Shaun

Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.



Senior Member

Status: Offline
Posts: 159
Date:

Shamus wrote:

Hi Janet,

Not something that I have dealt with myself as I tend to deal only with large multinationals but, a few thoughts...

firstly, sorry that you have lost a client.... That came out wrong but you know what I mean.

Is there a succession plan in place? Does anyone inherit the business? Were there employee's?

Any assets will be measured at / written down to NRV rather than depreciated cost.

Should this not all be in the hands of solicitors who will be distributing the estate? Really it should be them telling you what they need and I wouldn't like to tread on their toes.

I look forwards to hopefully reading better, more complete responses than mine but at least wanted to get the ball rolling.

Good luck,

Shaun.


HI Shaun

He was my favourite client too!! A successful one man band with no succession plan (his son's have other careers).

I was so shocked when they called my mind went blank! I managed to tell them to visit the bank, contact the companies who have DD's on the account and if they could find his workplan contact people who are expecting him to complete their projects. When I spoke to him in May he had a huge list to catch up with after last years restrictions.

The solicitor is a good shout, I'll keep that in mind when they get back in touch and NRV for the assets.

Thanks for your response



__________________

Janet

They keep making the system idiot proof but then make bigger and better idiots!



Master Book-keeper

Status: Offline
Posts: 3786
Date:

Hi Janet

Sorry to hear that sad news.

Has the family informed HMRC that he has died? If not then they need to do so and once they have your agent status for the client will no longer be valid, and it will be up to he Executor to appoint you if they want you to complete the 20-21 tax return.

This thread is relevant I think for your situation. Scroll down to Wanderers post on 8th Jan 03:52 which I hope will help you.

https://www.accountingweb.co.uk/any-answers/64-8-when-a-client-has-died.



__________________

John

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



Senior Member

Status: Offline
Posts: 159
Date:

Leger wrote:

Hi Janet

Sorry to hear that sad news.

Has the family informed HMRC that he has died? If not then they need to do so and once they have your agent status for the client will no longer be valid, and it will be up to he Executor to appoint you if they want you to complete the 20-21 tax return.

This thread is relevant I think for your situation. Scroll down to Wanderers post on 8th Jan 03:52 which I hope will help you.

https://www.accountingweb.co.uk/any-answers/64-8-when-a-client-has-died.


Hi John

That link is really useful thank you. I didn't find any information on gov.uk to tell me my agent status would end. Getting that re-instated is more important than worrying about the returns etc!

The family used the 'Tell me once' system when they registered the death, it hasn't filtered through to my account yet. I can let them know what will be required once this happens.

Thanks again.



__________________

Janet

They keep making the system idiot proof but then make bigger and better idiots!



Member

Status: Offline
Posts: 10
Date:

Why would gov.uk tell you that. It's common sense. Legal entity changed, so agent status revoked and need new. As is the fact you don't deal with family members, you deal with the person/people authorised to deal with the estate. That includes doing the usual MLR and new LOE.

__________________


Senior Member

Status: Offline
Posts: 159
Date:

Chaz wrote:

Why would gov.uk tell you that. It's common sense. Legal entity changed, so agent status revoked and need new. As is the fact you don't deal with family members, you deal with the person/people authorised to deal with the estate. That includes doing the usual MLR and new LOE.


Thank you for your response Chaz.

New paperwork is being put in place and the family member is the executor.



__________________

Janet

They keep making the system idiot proof but then make bigger and better idiots!



Senior Member

Status: Offline
Posts: 144
Date:

Hi,

I had this happen to me the year before last when a sole trader died suddenly.

When the family registered the death the registrars automatically contact the relevant departments such as DWP , passport offfice and DVLA as well HMRC.

HMRC closed down his gateway account and automatically cancelled my agent authorisation so I couldn't do anything more . The family were sent a paper tax return form to fill in and send off once completed and then a few weeks later they were sent a final letter with the amunt of tax due to pay.

Hope this helps

stephen



__________________
Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.

Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  
2007-2021 The Book-keepers Forum (BKF). All Rights Reserved. The Book-keepers Forum (BKF) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Book-keepers Forum and BKF are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Book-keepers Forum. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Book-keepers Forum. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to: info@bookcert.co.uk.

Privacy & Cookie Policy  About