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Original poster

Maternity allowance - am I stuffed?

53 replies

breadhead · 18/08/2017 09:30

I am 23 weeks pregnant today and only just realised I may possibly be eligible for some maternity pay, but my work is pretty casual so don't know where I stand or what to do from here.

For the past 3 years or more I have earned around £300 a month from cleaning 3 friends' houses. This is a combination of cash in hand and bank payments. I also work as a freelance writer which I get paid around £250 a month for directly into my bank account but without any tax deducted. I also do exam invigilating for a local school which I am paid for on their official payroll but do not appear to be paying any NI contributions. Plus I do a few small, random online jobs e.g. surveys, which I get paid for on their payroll but again they have not deducted NI. I have also recently done a random novel editing job for a friend for which I was paid £500 into my bank account. Was I meant to declare this somehow? (not even sure how to 'declare' anything!)

Because I earn less than £10,000 a year I assumed I didn't need to declare anything as I wouldn't be taxed on it. Was this wrong, or even tax evasion?! eeek!

I am neither registered as self-employed, not have a small earnings exemption certificate. Embarrassingly, I know little about tax - thought I was simply topping up our family income legally.

Anyway, I am due in 17 weeks time. Do I have time to sort any of this out and be eligible for maternity allowance? Any advice very welcome!!

OP posts:
MyfatheristheKing · 18/08/2017 09:33

You should've been declaring all that money to HMRC and be registered as self employed and keeping accounts.

Gobbolinothewitchscat · 18/08/2017 09:37

Agree - you should have been registered

Mat allowance is based on NIC contributions. So, if these have not been paid, you won't be eligible.

Original poster
breadhead · 18/08/2017 09:38

I didn't realise! Am admittedly not financially well-informed.
So....is it too late to do anything about it? Can I register as self-employed now for the next 13+ weeks?

OP posts:
Spam88 · 18/08/2017 09:39

You definitely need to be declaring your income to HMRC, regardless of whether you need to pay tax.

Mummaofboys · 18/08/2017 09:40

Fill in the maternity allowance form, as long as you have been working for 22weeks in the last two years and you have statements and or payslips you should be entitled to something. Cash in hand is illegal.

FridgeCut · 18/08/2017 09:42

You should have been paying National Insurance Contributions as a self employed person.
www.moneyadviceservice.org.uk/en/articles/tax-and-national-insurance-when-youre-self-employed
Whether you will get any maternity pay I don't know, but you should at least try and avoid a fine and a big bill for your NICS.

Original poster
breadhead · 18/08/2017 09:42

But even on my payroll slips it doesn't deduct NIC, so I assumed I just wasn't earning enough to warrant it.

There was no deliberate intention to avoid! Will I owe anything to HMRC? Am thinking I should call them, or would I get a fine?

OP posts:
PlaymobilPirate · 18/08/2017 09:42

If you're earning you need to declare it. You probably wouldn't have paid tax but you're earning every month ( at least the £250 regular wage)

You can't just take, you have to be prepared to give whete necessary.

thought I was simply topping up our family income is relative really. Someone a few quid over the tax bracket would be struggling and really appreciate all the tax free income you have.

cottagerose · 18/08/2017 09:43

I think you have to be registered as self employed for 26 out of the 66 weeks before the baby is due to claim anything.

KarateKitten · 18/08/2017 09:43

Cash in hand is fine if you declare it!

PlaymobilPirate · 18/08/2017 09:45

Pressed post too soon.

Re: it's all relative = a very rich family may consider a £20,000 salary as 'just a little top up' doesn't mean that top up shouldn't be taxable.

Gobbolinothewitchscat · 18/08/2017 09:45

You could register now but not much point as you would have to have demonstrated that you had been employed/self employed for 26 weeks of the 66 weeks prior to your estimated due date. What you could do, is register as self-employed for the last 26 weeks and contact HMRC on that basis to apply. Your tax for that period (includig NIC).wouldn't be due yet and see what they say. Really though, you should come clean about the whole period and fill in a tax return. Then pay the NIC. They may ask if you want a certificate to exempt you from paying NIC due to your low income. Make sure you say NO as the corollary is you can't claim mat pay as you wouldn't have enough NIC contributions. Go through your work history though for the last 66 months though and work out if you have worked (and paid NIC) for 26 of those. They don't need to be consecutive

Original poster
breadhead · 18/08/2017 09:45

ok., so I'm buggered. Tough lesson, we will be financially strained. But of course, my fault, I was quite prepared to pay whatever I was meant to - just in all honesty did not know.

OP posts:
hellomarshmallow · 18/08/2017 09:46

You need to register as self employed and fill in a tax return online each year. Even if you have many earned anything at all, once you've registered, you need to complete one to avoid a fine. You need to keep spreadsheets or something to record earnings.

If you register now, you can still fill in tax return for April 2016-17, so you may well be eligible for mat alllowance.

Original poster
breadhead · 18/08/2017 09:55

Thanks hellomarshmallow, that is very helpful and encouraging.

I admit complete idiocy but deny intentional fraudulence. I am more than happy to pay my dues!

I have checked a couple of recent payslips I have e.g. for £45, but they have not deducted NI. I wonder why this is? I am tax code A, if that means anything.

So - action plan. I register as self-employed today, and find a tax return form, and all my payslips for the past few years. The only evidence of earnings I would have from most of my work is bank transfers from people who've paid me. Would this do for evidence?

OP posts:
hellomarshmallow · 18/08/2017 10:00

Yes, I think so. I'm often paid cash and I give receipts from a cheap duplicate book you can get from the post office/WHSmith. You could write a retrospective book of receipts.

Get a client list and record their addresses too.

Look online at maternity allowance rules (the gov.uk website) to ensure you show you were working during the required period. It's really (unnecessarily) complicated.

Don't give yourself a hard time about this Smile I hope you manage it!

Spam88 · 18/08/2017 10:01

I suspect NI hasn't been deducted because the amount you've earnt (not including that which you haven't declared) is below the threshold. And no the A on your NI number doesn't mean anything and nor is it your tax code.

Original poster
breadhead · 18/08/2017 10:02

PlaymobilPirate - but surely I would not have been taxed anyway because I was earning under the threshold? I would hate to think I had been taking 'tax free income', as you say.

OP posts:
bigsighall · 18/08/2017 10:04

I'm not sure how it works in detail but self assessment is usually only done once a year so you may be in the process of self assessment now but not need to do any paperwork for x months iyswim?
I would speak to a local accountant and see what they say. It might cost you a few quid for their advice but worth checking I think.

Original poster
breadhead · 18/08/2017 10:06

again, hellomarshmallow, thank you so much. Today I will also try to contact the people I work for and see if they can also write a letter of confirmation that I've worked for them or something...perhaps that would help.

I would also be happy to back-pay any NIC, if they would let me, though haven't a clue how much this would be....

Is it worth phoning the tax office for advice or should I avoid this for the moment?

OP posts:
SerfTerf · 18/08/2017 10:11

thought I was simply topping up our family income is relative really. Someone a few quid over the tax bracket would be struggling and really appreciate all the tax free income you have

How so?

Everyone gets to earn the first £11500 tax-free, unless they earn more than £100,000.

Who do you think is struggling in your scenario playmobil? And why wouldn't they have as much tax free income as OP?

SerfTerf · 18/08/2017 10:13

Is it worth phoning the tax office for advice or should I avoid this for the moment?

Yes, do.

You might be billed for last year's NICs and invited to duke a self assessment for the last year or two. They won't bite, whatever.

SerfTerf · 18/08/2017 10:13

File not duke Grin

PlaymobilPirate · 18/08/2017 10:21

Cash in hand income can really add up tbh serf - it's £550 a month in this case before the add ons of surveys, proof reading etc... the op could just be guessing it's under 10k. And it probably is but people earning just over that (say £13k) would pay tax.

I don't really believe the 'I'm not tax savvy' thing either - you dont just suddenly become magically aware because you want something back.

SerfTerf · 18/08/2017 10:27

And it probably is but people earning just over that (say £13k) would pay tax.

Yes on £13k pa, they'd pay income tax of £300pa (£25pcm).

OP isn't committing grand larceny or cunning large scale tax fraud. She'll have a zero retrospective tax bill and a modest NIC bill to pay by instalments.

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