I have not registered for self employment and need to claim Maternity Allowance

mama4

I feel a bit worried.
I'm 7 months pregnant and am trying to sort out my  Maternity Allowance.

I've spoken with HMRC as I've been self employed for 12 years but the MA team couldn't see this on their system.

Its come to light that I had registered for Self Assessment but not for Self Employment.
I genuinely thought that I was registered as Self Employed.

My earnings have been fairly low and I am in receipt of child and working tax credits, but I wondering what now?

I need to receive MA as I wont be able to work when baby comes in May.

But.
Will I receive a fine and be penalised for not registering for 12 years. Can I go to prison?
Will I have a huge tax bill to pay?
Will I have to pay Class 2 Contributions for 12 years before being entitled to Maternity Allowance.

Im feeling quite concerned with all of this at this point.

Can you help?

DullGreyGuy

So you havent been filling in the Self Employment section of the Self Assessment? 

noitsnotme

You say you ‘registered for self assessment’ so you must have been completing annual returns?  What have you been entering in the self employed section?

Have you been correctly declaring your earnings and paying the relevant income tax? 

mama4

No, I haven't been completing annual returns.
I assumed as I had not heard from HMRC that I did not need to complete annual returns as they could see from the information submitted to tax credits that I had a low income.

MattMattMattUK

mama4 said:

No, I haven't been completing annual returns.
I assumed as I had not heard from HMRC that I did not need to complete annual returns as they could see from the information submitted to tax credits that I had a low income.

How much have you earned per year for those last twelve years, less than the personal allowance and National Insurance thresholds? If you have not submitted Self Assessment Tax Returns for those last years and are over the thresholds then unfortunately you need to expect large tax and National Insurance bills with interest and fines on top. 

https://www.gov.uk/government/publications/rates-and-allowances-income-tax/income-tax-rates-and-allowances-current-and-past
https://www.gov.uk/government/statistics/main-features-of-national-insurance-contributions

mama4

Oh wow... oh dear, okay..
Ive earned less than the personal allowance, maybe give or take the odd year where I might have earnt over, but not by much...
Okay, I will have a look at these links, thank you MattMattMattUK and everyone else so far.

Savvy_Sue

mama4 said:

 
Will I have to pay Class 2 Contributions for 12 years before being entitled to Maternity Allowance.

No, not unless you should have paid it at the time.

If you were under the threshold, you'll need to make voluntary payments for the relevant years before you can claim.

WabbitWabbit

Have you got your business account records for the last 12 years? 
Your tax credits going back 12 years should have your income you declared for each year on record

I am self employed,  receive working tax credit and earn under the threshold. I manage my own accounts but my accountant does my return for me which then covers my  tax return, my working  tax credit claim and any class 2 contributions.

Dazed_and_C0nfused

mama4 said:

Oh wow... oh dear, okay..
Ive earned less than the personal allowance, maybe give or take the odd year where I might have earnt over, but not by much...
Okay, I will have a look at these links, thank you MattMattMattUK and everyone else so far.

Sounds like you have avoided paying tax in some years but almost certainly avoided paying NI in all years 😳.

This may have a significant impact on your State Pension entitlement as a self employed person needs to be paying Class 2 National Insurance to add qualifying years.

It also seems quite unusual for you to have registered for Self Assessment but not to have been asked to complete Self Assessment returns by HMRC.

TELLIT01

Dazed_and_C0nfused said:

mama4 said:

Oh wow... oh dear, okay..
Ive earned less than the personal allowance, maybe give or take the odd year where I might have earnt over, but not by much...
Okay, I will have a look at these links, thank you MattMattMattUK and everyone else so far.

Sounds like you have avoided paying tax in some years but almost certainly avoided paying NI in all years 😳.

This may have a significant impact on your State Pension entitlement as a self employed person needs to be paying Class 2 National Insurance to add qualifying years.

It also seems quite unusual for you to have registered for Self Assessment but not to have been asked to complete Self Assessment returns by HMRC.

There is nothing to suggest that the OP has deliberately created the situation.  On that basis it is wrong to say that they have 'avoided paying tax'.  'Avoiding' requires intent.