Month: May 2019

On the face of it, this sounds implausible. How can you change your will if you have died?

In reality, as long as any beneficiaries left worse off after any change, agree, you can change a person’s will after their death.

Any change must be completed within two years of the death.

The circumstances that such a change can be agreed are to:

• Reduce the amount of Capital Gains Tax or Inheritance Tax payable,
• Provide for someone who was left out of the will,
• Move the deceased’s assets into a trust,
• Clear up any uncertainty over the will.

Executors will need to make a variation to the will to accomplish the above, this will involve:

• Preparing a variation document that satisfies certain legal requirements, and
• If there is more Inheritance Tax to pay, a copy of the variation must be sent to HMRC within six months of making it. This condition does not apply if the variation does not change the amount of Inheritance Tax payable.

This ability to change a will after death can often resolve family disputes if the affected beneficiaries agree. However, the process is best managed by a professional advisor to ensure that all the formalities are dealt with correctly.

You will pay Scottish Income Tax if you live in Scotland, Income Tax if you live in England or Northern Ireland and the Welsh Income Tax if you live in Wales.

At present, the only regional variations under the control of the Scottish or Welsh governments are the rates of Income Tax charged.

For 2019-20, the rates set by the Welsh Government are the same as those in England and Northern Ireland. Scottish Income Tax rates have more bands and the higher and top rate are 1% higher than the rest of the UK.

These differences do open up planning opportunities if you live and work in the border areas between England and Scotland.

As you pay tax at Scottish or other UK rates based on where you live, you could choose to live in England and work in Scotland if you pay tax at the higher rates. Obviously, there are many other factors that you will want to consider when choosing where you set up home, but if the regional Income Tax rate differentials start to widen, the ability to reduce your Income Tax burden may become more of a deciding issue.

If you are an employer, you have a statutory duty to provide your employees with a copy of their P60 (pay and tax details for 2018-19) on or before the end of May 2019.

If you distribute P60s and then discover that changes need to be made you will need to give employees a replacement P60 – a paper or electronic version – or a letter confirming the change.

This requirement is additional to your other filing deadlines related to your payroll and later in the year you will need to deal with the reporting of expenses and benefits to HMRC.

If we take care of your payroll for you, these matters can be dealt with in a timely manner. If we don’t take care of your payroll, and you would like to be relieved of this tiresome chore, please call so we can discuss your needs.

1 May 2019 – Due date for Corporation Tax due for the year ended 30 July 2018.

19 May 2019 – PAYE and NIC deductions due for month ended 5 May 2019. (If you pay your tax electronically the due date is 22 May 2019)

19 May 2019 – Filing deadline for the CIS300 monthly return for the month ended 5 May 2019.

19 May 2019 – CIS tax deducted for the month ended 5 May 2019 is payable by today.

31 May 2019 – Ensure all employees have been given their P60s for the 2018-19 tax year.

1 June 2019 – Due date for Corporation Tax due for the year ended 31 August 2018.

19 June 2019 – PAYE and NIC deductions due for month ended 5 June 2019. (If you pay your tax electronically the due date is 22 June 2019)

19 June 2019 – Filing deadline for the CIS300 monthly return for the month ended 5 June 2019.

19 June 2019 – CIS tax deducted for the month ended 5 June 2019 is payable by today.

If you die without stating your wishes, the law will determine how your assets are distributed amongst your family. The rules that govern the process are set out in the intestacy rules. And there are regional differences.

Consider a parent whose personal assets amount to more than £1m.

In England and Wales

The husband, wife or civil partner keeps all the assets (including property), up to £250,000, and all the personal possessions, whatever their value. The remainder of the estate will be shared as follows:

• the husband, wife or civil partner gets an absolute interest in half of the remainder
• the other half is then divided equally between the surviving children.

If a son or daughter (or other child where the deceased had a parental role) has already died, their children will inherit in their place.

In Scotland

The husband, wife or civil partner gets the house up to a value of £473,000. They also get a lump sum of £473,000 if the house is worth more and may have to sell off the property.

They also get:

• furniture and moveable household goods up to the value of £29,000
• up to £50,000 in cash
• a third of the rest of the estate.

The children will get two-thirds of the rest of the estate.

If a son or daughter has already died, their children (the grandchildren of the deceased) will inherit in their place.

In Northern Ireland

The husband, wife or civil partner keeps all the assets (including property), up to £250,000, and all the personal possessions, whatever their value.

The husband, wife or civil partner must survive the deceased by at least 28 days to inherit.

They also get one third of the rest of the estate.

The remaining two-thirds are shared between their children.

If a son or daughter has already died, their children (the grandchildren of the deceased) will inherit in their place.

Make a will

As you can see, if the wishes of the deceased are going to conflict with these outcomes, there is only one course of action that will remedy the situation: make a will.