Donate to Remove ads

Got a credit card? use our Credit Card & Finance Calculators

Thanks to johnstevens77,Bhoddhisatva,scotia,Anonymous,Cornytiv34, for Donating to support the site

Handling tax return for elderly relative

Practical Issues
Raasu
Posts: 15
Joined: November 12th, 2016, 8:04 am
Has thanked: 11 times
Been thanked: 2 times

Handling tax return for elderly relative

#278630

Postby Raasu » January 19th, 2020, 10:58 pm

Hello I have recently taken over Power of Attorney over my mother's various savings and investments, because she is losing her memory and the ability to concentrate enough to manage them. Legal lasting power of attorney has been set up. It's fair enough as she has a large number of savings accounts and investments in different companies, amounting to over £1 million in total. She can't use the Internet, so she's finding it more and more difficult to manage.

I have basically got everything logged on spreadsheets now, registered for on-line access to all her accounts where I can, and am in the process of transferring all her investments over into one broker so it's easier to manage.

Until now she has had an accountant complete her self-assessment tax return every year. She pays tax on savings interest and dividend income, and she has foreign investments, foreign dividend earnings and a foreign pension (all in the EU). She's asked me to help with her tax return as well for 2019/2020.

Looking at the HMRC site (https://www.gov.uk/help-friends-family-tax) it looks like they will allow someone else to be an agent for someone else, which I imagine is what the accountant did for my mother. But also it's possible to be a "trusted helper" for a relative. I'm wondering what to do for this tax year. Since October 2019 I have established power of attorney now across all her accounts, so now I get all the correspondence. I've done self-assessments for myself in the past and helped my wife with hers, so I don't feel like I don't really need an accountant for my mum's return.

I don't know if I should register as a trusted helper for my mum, or as an agent (that seems to carry quite a legal responsibility), or carry on using the accountant she has used in the past. Any thoughts or advice? Thanks.

JohnB
Lemon Quarter
Posts: 2497
Joined: January 15th, 2017, 9:20 am
Has thanked: 677 times
Been thanked: 997 times

Re: Handling tax return for elderly relative

#278631

Postby JohnB » January 19th, 2020, 11:11 pm

I just created an account for Mum and do her return as if it were her typing, I don't indicate that I'm a different person. Before I submit it I tell her the results and she OKs it, as she's still got capacity. I have a PoA, but can't exercise it until she loses capacity of course. She has lots of different investments, but its not too hard to do, its just HMRC's badly designed website that makes me cuss (it got worse this year as they broke things).

surreycanary
Posts: 5
Joined: November 9th, 2016, 2:08 pm
Been thanked: 1 time

Re: Handling tax return for elderly relative

#278778

Postby surreycanary » January 20th, 2020, 4:40 pm

I am an agent for my mother. She is my sole client. I submit her tax return online. When I started to do her tax, there was no "trusted helper" option. If you look at what you can do as a trusted helper there is no option to submit tax returns online. If you foresee doing the tax return for a few years it is probably best to become an agent. (I am not aware of any "legal responsibilities").

Raasu
Posts: 15
Joined: November 12th, 2016, 8:04 am
Has thanked: 11 times
Been thanked: 2 times

Re: Handling tax return for elderly relative

#278789

Postby Raasu » January 20th, 2020, 5:07 pm

Thanks for that. I think I'll set up as an agent.

JohnB you can take power of attorney over your mother's affairs even if she has mental capacity, if she wants you to. When you register POA on her bank accounts etc. they generally ask if the client has mental capacity. I have been saying "yes" and I can still manage my mum's accounts, get online access and get all the correspondence, and carry out transactions.

If you say "no" to mental capacity then it means the company will no longer accept instructions from the client, but you'll probably need medical evidence from a doctor.


Return to “Taxes (Practical)”

Who is online

Users browsing this forum: No registered users and 7 guests