Maternity benefit self employed

Greenegrass

I received maternity benefit back in 2011, I was self employed at the time and had been for the previous number of years. I applied and received the payment based on the relevant tax year, 2009 (I had made prsi contributions).
Just this week though I was looking through old paper work and discovered that I didn't pay a contributory PRSI payment in 2011, I should have done this but at the time I remember ringing citizens info and they said I only had to show that I was working and didn't have to be liable to pay prsi.
When I filed my tax return for 2011 in 2012 I didn't qualify to make a prsi payment and didn't realise that I had to after speaking with citizens information (my return was so small because I'd only worked for 3/4 months.
I'm sick with worry that I'll have to pay back the maternity benefit from 2011, which would be over €5000!!
I also would have made a voluntary contribution to prsi if I had known sooner but I think you have to do this within 5 years (€500).
I haven't worked since this and had 2 more children that I obviously didn't claim maternity benefit for.
I haven't received any letter or notification about this but since figuring this out I'm not sleeping and barely eating and extremely worried that they could prosecute me.
Any thoughts or help on this matter would be greatly appreciated.

Darc19

Whilst revenue can go back as far as they like, it is very rare and only for serious cases of fraud. (hundreds of thousands)

Generally they don't go back more than 6 years especially for a paltry amount that seems to have been claimed properly.

Nothing whatsoever to be worrying about.

Greenegrass

Darc19 wrote: »

Whilst revenue can go back as far as they like, it is very rare and only for serious cases of fraud. (hundreds of thousands)

Generally they don't go back more than 6 years especially for a paltry amount that seems to have been claimed properly.

Nothing whatsoever to be worrying about.

Thanks for your reply.
I'm concerned though about social welfare as I now realise to have got the maternity benefit I should have made a prsi contribution in the year that I received maternity benefit (2011), I had made prsi contributions in 2009 so qualified for it but it says that I should be in insurable employment which I now realise means paying prsi.

Greenegrass

Should I contact maternity benefit and explain this and see am I liable to pay it back or should I try and forget about it and see if I'm notified? It's been nearly 9 years since the claim

jules86

Greenegrass wrote: »

Should I contact maternity benefit and explain this and see am I liable to pay it back or should I try and forget about it and see if I'm notified? It's been nearly 9 years since the claim

No don't worry about it. Its been 9 years, they wouldn't have awarded it if you weren't entitled to it.

Greenegrass

jules86 wrote: »

No don't worry about it. Its been 9 years, they wouldn't have awarded it if you weren't entitled to it.

Thanks for the reply. I was awarded it but now I'm reading it it says that I should have then paid a prsi contribution the year I got it. Will they check back and notice this do you think? I'm absolutely sick with worry that I'll be prosecuted, it was a genuine error of stupidity on my part. May this only come to light if o apply for a social welfare payment or pension? Neither of which I'm planning on doing

Greenegrass

Anyone's advice on this would be really appreciated

un5byh7sqpd2x0

Darc19 wrote: »

Whilst revenue can go back as far as they like, it is very rare and only for serious cases of fraud. (hundreds of thousands)

PRSI is a Welfare payment though, it’s just collected on their behalf by Revenue.

Greenegrass

Jaden Obnoxious Warfare wrote: »

PRSI is a Welfare payment though, it’s just collected on their behalf by Revenue.

Thanks for your reply, I know revenue only collect the payment for deasp. I'm just wondering should I be concerned about the maternity benefit I received and is it only a matter of time before they are aware that I didn't make a prsi contribution that year?

Greenegrass

Jaden Obnoxious Warfare wrote: »

PRSI is a Welfare payment though, it’s just collected on their behalf by Revenue.

Sorry, I just realised you were replying to the other members comment, this is my first time using this!!
Do you have any opinion on this, what should I do?

Greenegrass

Does anyone have any advice or was in a similar situation?
Is it likely that social could prosecute me or will the worst be paying back the maternity benefit?
Many thanks

y0ssar1an22

Greenegrass wrote: »

Does anyone have any advice or was in a similar situation?
Is it likely that social could prosecute me or will the worst be paying back the maternity benefit?
Many thanks

Taxation of Maternity Benefit
Maternity Benefit is taxable for all claimants. Universal Social Charge and PRSI are not payable.

https://www.citizensinformation.ie/en/social_welfare/social_welfare_payments/social_welfare_payments_to_families_and_children/maternity_benefit.html

ETA: are you talking about PRSI on maternity, or your self employed income?

Greenegrass

y0ssar1an22 wrote: »

Taxation of Maternity Benefit
Maternity Benefit is taxable for all claimants. Universal Social Charge and PRSI are not payable.

https://www.citizensinformation.ie/en/social_welfare/social_welfare_payments/social_welfare_payments_to_families_and_children/maternity_benefit.html


ETA: are you talking about PRSI on maternity, or your self employed income?

In 2011 thankfully maternity benefit wasn't taxable. It only became taxable in 2013, I think. The year I went on maternity leave I filed a tax return (in 2012 for tax in 2011) but wasn't liable to pay a PRSI payment because I was earning under the threshold. My problem is that looking back, in order for me to have been allowed maternity benefit I should have made a voluntary contribution of PRSI as I had to me in insurable employment. I didn't realise this at the time.

y0ssar1an22

minimum charge for prsi is €500, 4% of taxable income (larger of the 2).

http://www.dsfa.ie/en/pdf/vc1.pdf

thats the form to make a voluntary contribution if you wish. €500/4%.

TBH, I wouldn't bother. this is going back at least 8 years. You could contact the dept. and ask them for a statement of your contributions paid to date (that will be broken down by year).

Greenegrass

y0ssar1an22 wrote: »

minimum charge for prsi is €500, 4% of taxable income (larger of the 2).

http://www.dsfa.ie/en/pdf/vc1.pdf

thats the form to make a voluntary contribution if you wish. €500/4%.

TBH, I wouldn't bother. this is going back at least 8 years. You could contact the dept. and ask them for a statement of your contributions paid to date (that will be broken down by year).

Thanks for your reply! I would love to make a voluntary contribution and pay the €500 but I think you can only go back 5 years. I'm afraid if I ring them they'll realise the error and I'll possibly have to pay back the maternity benefit.
Do you think I could be prosecuted for applying for maternity benefit and not paying a contribution that year?

y0ssar1an22

Greenegrass wrote: »

Thanks for your reply! I would love to make a voluntary contribution and pay the €500 but I think you can only go back 5 years. I'm afraid if I ring them they'll realise the error and I'll possibly have to pay back the maternity benefit.
Do you think I could be prosecuted for applying for maternity benefit and not paying a contribution that year?

im no lawyer, but i would say virtually zero chance.

you could request a statement from them - there could have been a contribution you have forgotten about.

if you want, you could make a contribution for 2016, and ask them to reallocate that to 2011?

Greenegrass

y0ssar1an22 wrote: »

im no lawyer, but i would say virtually zero chance.

you could request a statement from them - there could have been a contribution you have forgotten about.

if you want, you could make a contribution for 2016, and ask them to reallocate that to 2011?

I would do that no problem if I thought that would work. Do you know if it's possible to transfer from 2016 to 2011?

y0ssar1an22

Greenegrass wrote: »

I would do that no problem if I thought that would work. Do you know if it's possible to transfer from 2016 to 2011?

i dont unfortunately.