Maternity Allowance Self employed

(8 Posts)
Sleepsleepsleep12 Wed 25-May-16 11:06:37

Hi,

Hoping someone can help!

So I have been self employed since May 2015 to date.

I sent off my maternity allowance forms around 3 weeks ago and today received a reply saying I was entitled to £27.00 per week! As you can guess this has NOT gone down well!

In sheer panic I called the office and spoke to the lady there. She said that they have sent an email to HMRC with regards to my national insurance contributions Class 2 and that I should receive a letter from HMRC with a small bill to pay. Once this is paid I can then go back to them and they will re-calculate my claim and see if they can get it to the normal £137.58 per week. Which is great but I am due to go on maternity 06/06/2016 so does anyone have a clue how long this should take?

Also I'm a bit in the dark as to if I even qualify to pay national insurance. I have earnings of £7,200 for tax year 15/16 and I am yet to do a tax return for it as they are not due until jan 2017 at the latest.

So with £7,200 earnings and around £1500 in expenses that brings me to £5,700 which is less that the threshold for paying national insurance. will I have to pay the full bill?

any advice greatly appreciated...

Many Thanks

bookgirl1982 Thu 16-Jun-16 20:05:49

That sounds right as you haven't don't a tax return yet and therefore won't have paid your basic NI for the qualifying period. You can opt to pay this even if you are under the earnings threshold.

It may take a little while as you are dealing with HMRC and DWP! But the MA helpline are quite good. If you are entitled to the higher rate I think you can backdate if it takes a few weeks to sort out.

Badbadbunny Fri 17-Jun-16 10:03:41

I am yet to do a tax return for it as they are not due until jan 2017 at the latest

That's the deadline, not a target grin

Nothing to stop you submitting it now - you still don't have to pay the tax until Jan 2017, but your tax/nic records will at least be up to date and show the right position.

MrsMKJ Wed 13-Jul-16 22:33:10

If ever there was a reason to crack on and get my accounts done before mat leave! How far in advance of going on leave would you recommend applying for mat allowance? sleep fingers crossed for you!!

Quodlibet Wed 13-Jul-16 22:38:22

I had this happen too. I rang HMRC who said that DWP hadn't yet got in touch with them so it was lucky I had. Got a bill a couple of weeks later for £30.80 which is the standard weekly NI contribution from April 1 til now, which I paid online. Hoping they now up my mat pay! It's a fucking stupid system as the same is going to happen to anyone who claims MA between April and Jan each year and hasn't yet done their tax return (I know very very few SE people who do!)

MrsMKJ Thu 14-Jul-16 00:01:31

Jeepers, I never would have anticipated this in a million years. So I need to get my tax return in before I need to claim? I hope that resolves it? How far in advance do I need to apply for the mat allowance? Thanks for your help ladies, i really hope you get things sorted soon!!

Quodlibet Thu 14-Jul-16 09:32:47

Mrs it will make things simpler if you do your tax return now yes.

I think you get your MatB1 form at 24 or 28 wk midwife appointment, and it's worth dealing with it as early as you can. I left it far too late this time and so consequently am supposed to be living on £27 a week currently while this mess gets sorted out.

crazywriter Sun 24-Jul-16 02:59:24

I found this when claiming last year. I was missing a period of nics because of the change in how nics were paid. I didn't earn enough to have to pay them (never have) but paid them.voluntarily because of may allowance and pension. I didn't have much to pay when it came to it. There was also a very helpful woman on the phone who gave me the tip to add a note on my form to insist hmrc got in touch if necessary.

I've always done my tax return before the end of may each year. The accounts are in so why leave it later? I don't understand why people (and I have friends who do it) leave it to the last minute.

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