What to do when an employee dies
Paying an employee who has died
You must make all outstanding payments when an employee dies.
Put the date they died into the 鈥楧ate of leaving鈥� field in your next Full Payment Submission (FPS), and deduct tax using their existing tax code. Use category letter X so that you do not deduct National Insurance. Do not produce a P45.
Payments to a person who has died are usually made to the personal representative or executor of that person鈥檚 estate.
If you make a mistake
If an employee dies and you did not report it in the right FPS, follow the guidance for when an employee leaves.
Making a late payment
If you need to pay someone after you鈥檝e sent an FPS with their 鈥楧ate of leaving鈥� (the date they died):
- use tax code 0T on a 鈥榳eek 1鈥� or 鈥榤onth 1鈥� basis
- include their 鈥楧ate of leaving鈥� and put 鈥榊es鈥� in the 鈥楶ayment after leaving indicator鈥� field in your FPS
- choose 鈥楬 - Correction to an earlier submission鈥� in the 鈥楲ate payment reason鈥� field
- update the year-to-date figures - or if it鈥檚 a new tax year, make sure the year-to-date figures only include the additional payment