I can't believe I will be penalised for working!! [fume]

[BigTeuchLittleTeuch]

I am both self-employed and employed, although my employment earnings are not high enough to attract NI payments.

However, due to some glitch in the system, because my employer pays other people NI, I have to take SMP from them, at 90% of my low earnings, rather than the basic Maternity Allowance which I would be entitled to

It is the difference of well over £100 a month FGS!!

aaahhhhh - just needed to get that out

[dilbertina]

Ehhh? No that can't be right - it depends on your situation, not your employers. If you earn less than the lower earnings limit in the 8 weeks prior to the 15th week before due date you don't qualify for SMP from them.... Who told you this?

[dilbertina]

Incidentally, at my company we pay plenty of NI. We would not pay SMP to someone who didn't qualify.....

[BigTeuchLittleTeuch]

I'm above the lower earnings limit, but below the limit at which NI kicks in.

But I am 'treated' as paying NI [boggle]

What is the point in having 2 limits??!!

[dilbertina]

Ah I see. So you do in effect "qualify". It isn't because your employer pays NI for others.

Have you already worked the qualifying weeks? If for example your employer agreed a weeks unpaid parental leave you would probably get your average under the threshold. Prob. not practical though I know... Are you planning on returning to work? Maybe you'd be better off resigning before your maternity leave? (although check you would get MA based on your self-employed contributions)....

Can understand the frustration though!

[dilbertina]

Re: the limits.... Yes I think it confuses everything even more too. However in some cases it could work to your advantage...eg you'd qualify for SSP etc. Small comfort I realise....

[BigTeuchLittleTeuch]

I know it is not so simple as they pay NI for others, but that is basically how it was explained - because they pay a certain level of NI in total or something...

I was planning on returning but I'll have to give it some thought. I pay NI 2 contributions so do qualify for the basic MA.

I have asked employer to consider an enhanced maternity package, whereby they basically pay the difference between my SMP and my usual monthly pay - not much but at least I wouldn't be any worse off and they can be more confident of keeping me?!

[dilbertina]

Thats worth a try, although it may depend how tight things are for them at the moment. - They can claim your SMP back, but not any enhancement they choose to give you. Hopefully since you're talking relatively small amount they may agree. I assume you've already worked the "qualifying weeks" so can't play around with your pay in those weeks?

I would be very frustrated in your shoes too!Does seem silly.

[BigTeuchLittleTeuch]

thanks for sympathising!!

I have worked the weeks already, so no fiddling possible!

[dilbertina]

Damn, I like cooking up little "fiddles".... (obviously in an entirely legal way...merely exploiting holes in some less well thought out bits of legislation...!)

[BigTeuchLittleTeuch]

I am particularly pissed off as I have been asking my HR about this since around the start of the qualifying weeks, and had they not been so bloody incapable and slow, we would have managed to work something out!! .

I would have had no problem taking unpaid leave in order to drop a few quid and get under the threshold!!

[flowerybeanbag]

I'm sure you are right about your HR dept being slow and incapable, but to be fair, there's no reason whatsoever they should know about benefits and what rules there are surrounding MA.

They should be able to tell you whether or not your have met the qualifying requirements for SMP, but anything else is between you, the benefits people and whoever gives you accountancy advice for your self-employed work.

[BigTeuchLittleTeuch]

That's all I asked them - to confirm whether or not I would qualify for SMP!!

In JUNE!!! It is now October!!

[flowerybeanbag]

Well that is indeed v incapable and v v slow!