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Self-employed and planning to claim maternity allowance? WARNING!

4 replies

moreismore · 01/08/2018 08:31

This has probably been done to death on other threads but just in case it saves anyone else losing money!!:

Now that class 2 national insurance is taken annually, it’s quite likely that when you apply for mat allowance they will classify you as ‘not having paid enough to qualify’ leaving you with an award of only £27/week.

I applied as early as they allowed me to, paid the required £37.05 the day I had my letter through advising me I would only be getting £27/wk, am yet to receive any official letters from hmrc with a bill.

Spoke to hmrc today and they have no record of my payment. It will take 10 working days to do an ‘urgent trace’. I couldn’t pay again over the phone. They can’t guarantee the same problem won’t happen again if I simply pay again online.

Once they find my payment they then have to inform the DWP, who will review my award. This can take up to 21 working days.

My mat leave payments start today. They wont backdate the payments or add more time onto the period I can receive mat allowance.

Basically I will be losing out on £100s I should have been entitled to.

I would strongly advise anyone self-employed planning to claim mat allowance to contact HMRC ASAP and pay £37.05 class 2 national insurance (the maximum you will have to pay) to make sure your application goes through first time and you avoid all the delay! Also be sure to check the code HMRC give you to identify your payment applies to this tax year (apparently another common mistake).

Hope this helps someone!

OP posts:
twinkydink · 01/08/2018 10:34

Thank you for this post, this has been hugely stressing me out. I've done last year's accounts now and I dont qualify to pay for NI but I want to do as yp u suggested and pay the extra so I get the full amount of maternity allowance. It seems like such a backwards way to do things.

Can I ask what department you contacted at HMRC? It's such a minefield I'm so confused by it all and my accountant has been very little help too.

moreismore · 01/08/2018 12:12

I just rang the main 0800 number and told the voice automated thingy I wanted to discuss class 2 national insurance. The person I spoke to at HMRC was actually very helpful. I would definitely just pay the £37.05 and check the ref number they give you corresponds to this tax year, then fingers crossed you won’t have any problems!

It is a total nightmare, I really feel for anyone who has to deal with these departments on a regular basis!

OP posts:
twinkydink · 01/08/2018 15:06

Honestly thanks so much for this. I have 4 weeks till I can apply and was dreading applying, getting the minimum and then having to reapply! I'll give them a call this afternoon, fingers crossed I'll get a helpful person!

moreismore · 01/08/2018 17:46

No worries! Fingers crossed for you Smile

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