Hi, has anyone seen the latest HMCTS update digest, stating that from 18th January probate professionals will need a code from HMRC in taxable estates before they can submit an application online?
“From 18 January, probate professionals who submit probate applications on MyHMCTS must include a code from HM Revenue and Customs confirming inheritance tax affairs have been settled.
MyHMCTS will not accept applications without a code in order to reduce the number of stopped applications.”
The ICAEW website also has this information following their meeting with HMCTS in December:
"HMCTS and HMRC are making progress with their new administrative process to prevent IHT forms being submitted prematurely. The new process will mean that rather than practitioners returning the IHT421 form to HMCTS, HMRC will send a letter with a code directly to probate practitioners to confirm that the IHT form has been received and processed. HMRC will also provide the IHT400 gross figure and net figure to use in probate applications.
This is intended to address concerns that around 9,000 stops in 2022 were due to IHT400 forms being submitted incorrectly. HMCTS is working towards a release date of early this year. From that date, you will not be able to apply online without the code from HMRC. "
Surely this is a step backwards, as HMRC currently send the IHT421 direct to HMCTS??
Hilarious and depressing, more so the latter. Plainly will add to application timescale whilst practitioner awaits code from HMRC before ‘MYHMCTS’ statement can be finalised and issued to client for signature and return.
This doesn’t seem to make any sense! The IHT400 is sent to HMRC and does not involve HMCTS at that stage. As Rebecca said, it is HMRC, not the practitioner, who send the IHT421 to HMCTS, so I cannot see what the problem was.
Also, it is surprising that it was ICAEW, not The Law Society, who was engaging with HMCTS about this. Perhaps it was errors on the part of accountants that caused the problem.
Presumably HMCTS have to contact HMRC to check the code provided by the applicant is valid…
In all seriousness, if HMRC have not started sending out codes now, how will practitioners be able to submit probate applications from Thursday? Has anybody received a code?
It’s an absolute joke. Minimal notice. Guidance not updated.
Yet Mike Freer MP is bleating on about “improvements…competence…productivity” yet they don’t even let practitioners know about a fundamental change to procedure.
I’m preparing an IHT today and will do so and just send off. I am presuming HMRC will send me a code.
I can only assume that HMRC will write to the applicant, as it used to do when it took over sending/emailing the stamped IHT 421 to HMCTS, confirming mthat it has done so and will include the magic number to go in the online probate application. I presume this will happen whether or not tax is payable. At least I hope so as I am about to submit an IHT 400 where no tax is payable, at least at present.
I really can’t see how a change to the existing process, which seems to be what is suggested, will speed matters up and stop the many “stops” which It seems are taking please.
‘Also, it is surprising that it was ICAEW, not The Law Society, who was engaging with HMCTS about this. Perhaps it was errors on the part of accountants that caused the problem.’
I find this insulting on various levels. Perhaps ICAEW are more active in sorting this than the Law Society ? As for suggesting it is accountants errors…
To my great surprise the Law Society has updated its probate advice today to include mention of the codes. To no surprise at all, this just copies the HMCTS update and doesn’t mention any of the obvious issues with the timing.
HMCTS have updated their guidance inter alia:
If you completed an IHT400 form and applied after 17 January 2024, you will be asked if you have received a letter from HMRC with a unique probate code.
It isn’t clear whether/how HMRC will be providing codes for IHT400s submitted in the past month. Perhaps you have to call them.
I called HMRC this morning to chase an IHT421 on an application made in early December and asked whether I needed a code as the application to HMCTS will not go in until after 18th Jan.
I was told that they were operating a period of grace for any applications they had received before today (18th), but it is not clear exactly how this will work and whether HMCTS will accept applications over the next month or so without codes.
Also, we have been told that they will not provide the codes over the telephone. So it seems that even if they tell us by phone that the IHT421 has been issued, we will not be able to lodge our applications until we receive the letter with the code.
Nicola Waldman | Partner | For Hodge Jones & Allen
Applying for probate. Declare IHT 400 prepared. MyHMCTS then asks if I have the Code. I press no and as I expected I get told to wait. So now we wait until we get this code before we can even prepare the application.
Surely they should allow preparation, get it signed then enter the code on completion/submission. It would be similar to the payment section they recently introduced.
As others have posted, this will just add time sending IHT then Statement to be signed.
I gave them too much credit as I naively thought “surely they won’t be that stupid”
Nicola - would you mind if I shared your reply from HMRC in a blog and/or Linkdin as I feel the most important thing at the moment is to disseminate this to all those involved in IHT and probate . Many here are Lawyers… I act for accountancy firms in an advisory capacity as a specialist tax advisor and lecturer
I don’t think it is intended to be an improvement so much as a turf war between HMRC and HMCTS which we have the joy of being in the middle of.
Having also spoken with HMRC yesterday, Nicola’s understanding that codes and estate values will only be provided by letter is correct, which is unfortunate as at least if it was over the phone that would speed things up a little. Expect to be chasing HMRC up for letters I imagine.
The My HMCTS portal allows you to say that documents were sent to HMRC before 17 January and thereby avoid the need for an HMRC code. So that is the grace period being referred to.
HMRC says it will save time because you no longer need to complete IHT421 - but clearly has little idea how HMCTS is implementing their part.
In theory it could save time (after initial confusion) if HMRC produce their codes quickly - no need to wait 20 days - but I do wonder if the actual problem was not agents submitting probate applications before the 20 days were up but actually HMRC not sending the IHT421s to HMCTS within the 20 days.
