To recommend all sahms who might have another baby register as self employed...

[sillyoldfool]

...and pay their class 2 national insurance contributions?

If you register, and pay your NI you're entitled to the full amount of maternity allowance (£137 a week for 9 months) it doesn't matter how much, if anything, you earn. The NI contributions are less than £2 a week. If you pay them for 2 years you'll get the full amount back within a couple of weeks of MA.
So register, sell a couple of bits on test or similar, do a tax return once a year (very simple if you're not earning much) and then claim MA.

When I claimed MA (4 yrs ago) you didn't need any proof of income as Self employed, you just had to have enough qualifying weeks and be paying Class 2 NICs. That may have changed since though.

I really am not, as I have the letter saying I'm entitled to it here, and I have given no evidence of my income, I've just paid class 2s.

Whether you believe me or not I really recommend looking into it, you'll find it worth doing.

But jack, the point is, for SE people the payment of NI is used instead of proof of income hence
"If you
-are registered as self-employed, and
-have paid class 2 NI contributions, and
-do not hold a small earnings exemption certificate
you will be treated as having enough weekly earnings to result in the standard rate of MA for any week covered by that Class 2 NI contribution"

You have to have paid class two NI for 26 weeks or whatever the number is, you do not have to prove your income for those weeks.

Sillyoldfool could they have been using your completed tax returns as evidence of earnings do you think? It's all computerised now so perhaps they have based your qualifying amount on the income that's showing on their database.

The only pitfall I forsee with this is if you claim any tax credits. You'll have to explain that you are self employed to them and risk your claim being held up for weeks or months whilst they determine whether you are 'meaningfully' self employed or not (as happened to me - I was S/E but on very low earnings). Once their compliance team get hold of your claim it may take a very long time to sort out.

But yes, if you pay the class 2 contributions, you will be deemed as having earned over the minimum threshold for full maternity pay. Not sure if you have to have worked over a certain number of hours during your test period though?

sillyoldfool is right - look at the DWP page here. I've also claimed MA while being self employed but not actually earning (not as a deliberate loophole, but was too ill to work then had family caring commitments for a period that made working impossible then was too far gone in the pregnancy to realistically find work in the industry I work in ). The £30 relates to people in employment, not the self employed, for the self employed it's the payment of class 2 NI that is relevant.

Not sure how I feel about SAHMs deliberately using the loophole to gain maternity benefits though... would worry it might get closed and a minimum earnings threshold applied so if you have a lean period while self employed and have a very low/negligible income for a while you could theoretically lose your maternity allowance as well, which seems unfair.

No because 90% of my earnings is less than the full amount of MA.

I just know a number of people who could have claimed MA because they make/sell crafty bit, cakes etc, but didn't realise they were entitled to.

So I suggest if you're thinking of another baby you should look into it.

And if you're planning another you shouldn't get a small earnings exemption certificate because it's worth your while paying the full class 2s.

I understood that it was a good idea for SAHMs to keep paying NI anyway as it goes towards your old age pension and if when you hit the age of 65 you haven't paid enough in, you won't get a full pension out.

Great idea. Can you also do this if you have another part time job? I work part time in the university. Would it be worth me doing this?

For pension purposes your NI contributions are covered if you are getting CB and your children are under a certain age.

Well, I had a pt job which I left at the beginning of the period they use to assess MA.
I just about earnt enough through that to be entitled to £80 MA a week, but the SE/NI thing means that is disregarded and I get the full amount.
It's worth working out if it's worthwhile for you.

I'm (genuinely) self-employed. It would have been difficult for me to prove my earnings over the given weeks as I do a lot of work on spec/for free & then get paid lump sums when a contract comes up. I guess if they allowed you to take an average over the previous year it might be ok. As it is I feel grateful not to have much extra admin over it.

Exactly mavis, I suspect for the small amount of people it applies to it is just not worth the admin. it would ptob cost the gov more than just paying the MA.

Foodschmood I know what you mean, but personally I am nearly 39, have paid taxes since I was 16 and have never qualified for a benefit in my life. I am TTC #2 and was hoping to use my employment during maternity leave as a way of being able to claim MA for #2.

Right now we are struggling to conceive and each month that passes I was aware that those hours will be getting closer to being outside the allowed window and I would be entitled to nothing. This thread has actually given me some hope.

Until every Tom, dick and Harriet start at it.

Interesting, as it actually makes it more worthwhile for people to declare their income if below the tax threshold, rather than relying on 'cash in hand' for small earning, SE jobs.

Unfortunately we don't qualify for child benefit or any tax credits as my partner is just outside the earnings threshold.

Do look into it sebsmummy, it could make a big difference. Good luck ttc.

Thank you xx

Even if you're above the threshold for CB you should still claim it then the high earner should pay it back through doing a tax return, that way you still get the credits towards your pension.

Is that not unethical?

I don't know, thats up to you, its no different to wealthy people using lots of loopholes to make their tax payments more 'efficient' IMO.

Well I am not having anymore babies (hopefully) and I am really self-employed and I am not wealthy so none of them apply!