Death Of A Pensioner
Estates (Small Payments) Act 1965 originally set a threshold of £100 to indicate a small estate. This was revised to £500 by statutory instrument and then to £5,000 in 1984. In Scotland the definition of a “small” estate is one where the total value of money and property is no greater than £36,000 (was £30,000) but this is for the purpose of administration. Employers need to take this into consideration and make a reasoned and informed decision whether or not to release outstanding wages to someone who appears to be a beneficiary. DEATH OF A PENSIONER On receiving notification of the death of a pensioner the pension payer should submit the leaving date to HMRC and apply PAYE to payments after death following submission of a leaving date and made to the deceased’s personal representative using code 0T on a non-cumulative basis on the pensioner’s payroll record. COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS Where such payments are made in a later tax year, and after submission of a leaving date, code 0T (non-cumulative) should be applied and details entered on payroll record in the name of the deceased pensioner. DEBT ARRANGEMENT SCHEME (DAS) (Scotland) Debt Arrangement Schemes, which came into force on 30th December 2004, under the Debt Arrangement and Attachment (Scotland) Act 2002, as amended by The Debt Arrangement Scheme (Scotland) Regulations 2011, seek to place debt management before debt enforcement and to reduce the number of Earnings Arrestments being made. A DAS scheme enables an individual to make planned and orderly payment of multiple debts, out of income in excess of that required for basic subsistence, over a period of time and provides for the: • attachment of articles kept in dwellings in exceptional cases, and • abolition of the seizure and public auction of household goods and personal property, in order to settle debts, under the authorisation of a Sheriff. Payment under a programme may be made principally by three methods: • Payment Mandate to an employer. This is expected to become the most common option • direct debit or standing order • smart card, swipe card, smart key or other type of payment card or key. No printing, copying or reproducti n permitted. Procedure The employee (debtor) must supply a completed form, Form 3 (DAS(Scotland) Regs 2011, Reg32(1)) to the employer showing the deduction amount. An amount having been agreed with the advisor as ‘such an amount that the debtor can afford to pay on each payday’. Employers will be informed when the deductions are to be amended (Form 4) and when the deduction must cease (Form 5). Employers must send amounts deducted to the Payment Distributor as soon as is reasonably practical, and may deduct a £1 fee for each deduction (as for a Scottish Earnings or Current Maintenance Arrestment (50p prior to 5th April 2006). There is currently no definition of ‘arrestable earnings’, simply an instruction to take the set
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