Self-employed and pregnant, what am I entitled to?

[WhenFRUITYgotstuckupthechimney]

I'm a Childminder and am starting to get really worried about being able to pay my half of the bills/mortgage when I take maternity leave. My baby is due on 22nd March and have decided to take off the whole of April. Mainly because I will need 6 weeks to recover if I need to have another c-section (hopefully I wont)
I'm panicking because I thought I would have saved enough money by now to cover everything but I haven't as it's virtually impossible to save anything on my wage and need to use whatever is spare to go towards paying tax.

I know I get £117 per week for Maternity allowance but this is no where near enough.

I currently don't get anything apart from child benefit for DS. Got a bit confused with tax credits a while back so I get nothing from them until Oct 09. I haven't actually told them I'm expecting yet so really hoping I'll get something but I'm sure it won't be much if anything at all.

Am I entitled to anything else? I've never been on benefits before so no idea how it works or even who I would contact to find out.

Any advise would be really helpful

Bumping for you.

Hi Fruity, I am copying and pasting my posts from another thread that is running, as it covers the same info:

Maternity allowance all depends on your national insurance contributions. If you are paying class 2 national insurance contributions, then you are classed as having earnings equal to £130.20, which will then entitle you to Maternity Allowance of £117.80 per week, as long as you have been self-employed for 26 weeks in the 66 weeks prior to your EDD, and paying the class 2 contributions for at least 13 weeks in that period.

If you are self-employed but hold a small earnings exception certificate, then you will be treated as having earnings equal to the Maternity Allowance Threshold for earnings, which is £30 per week, which will entitle you to MA of £27 per week, as long as you have been self-employed for 26 weeks in the 66 weeks prior to your EDD, and held the small earnings certificate for at least 13 weeks in that period.

The other scenario is that if you have been employed in the 66 weeks prior to EDD, and self-employed, you can submit whichever details come out best for you, and you also submit your best earnings.

So, for instance, if you had been employed for 13 weeks, earning £300 per week, but now have a small earnings certificate which you have held for 13 weeks, you are able to cobble together the two types of employment, totalling 26 weeks, but submit the payslips from your employment, which would give you MA of £117.80 per week, as opposed to your small earnings exception, which would only entitle you to £27 per week.

Obviously, if you only close shop for 6 weeks, you can only claim MA for 7 weeks 3 days, as you would have 4 weeks closed, then 10 days as keeping in touch days.

the sure start maternity grant is dependent on Child Tax Credits. If you receive more than the minimum rate of CTC (currently, April 2008 to April 2009 this means a Child Tax Credit rate of £548 a year or more [£10.54/week], or £1,095 a year or more [£21.06/week] if you have a baby under one year old) either before the baby is born, or within 3 months of the baby being born, then you are entitled to the Sure Start Maternity Grant of £500 per baby. I don't know in your situation whether it would be dependent on what you are actually getting, or what you would be getting if you hadn't already got "confused".

Also, if your baby is due after 06 April 2009, you will get a Health in Pregnancy Grant of £190, you get the form from your midwife.

I would look at your CTC award and find out if the deductions (I am assuming that is what you are talking about) are integral to your award, or whether you are given an award figure, then told that deductions of x amount are being taken until October. If that is the case, I would imagine that it is your award figure that is looked at for the sure start grant.

Sorry, I have just pressed post then saw that your EDD is 22/03/09. Feel a bit insensitive posting about the Health in Pregnancy Grant, just didn't notice your EDD.

Thank you Lou I'm hopeless, I always start a thread without looking to see if there's a similar one running

I've never heard of a small earnings exception certificate. I suppose its too late now to get one of those now. I definitely have "small earnings"! Not sure if it would be small though for the Inland Rev. I only earned just over £9000 once I had deducted expenses for 2007-2008.

I really can't make head nor tail of the child tax credits. I gave up thinking about it when they told me I would no longer be getting anything.
Perhaps I should call them. £500 would be great if I can get it. Means I only need to find another £500!

Do you think I would be entitled to anything other than Mat Allowance? Like income support or anything?
Who do I contact to find out? CAB? Local council?

I'm actually starting to lose sleep over the worry now. I've got visions of being repossessed - I'm a natural worrier anyway.
I'm now starting to think I should just have the compulsory two weeks off then get back to work but if I have a C-section then I will have to have 6 weeks off.
Not sure if I can take a payment holiday on the mortgage as we are on interest only? Someone told me you normally pay the interest when on a payment holiday?

I'm so fed up with worrying about money. My DP and I work really bloody hard and can't even enjoy the benefits of working. Same as everyone else I guess.

try www.entitledto.com

Thanks ssd Will do

Damn, it's asking for DP's income and I can never remember it. He's not here right now so will have to do it tomorrow

You refer to your half of the mortgage - presumably you live with dp and he earns? Is he able to save anything towards this cost (assuming it is his child?) You will be treated as a couple for benefits therefore wouldn't be able to claim income support if he is earning.

yes i do live with my DP and yes it is his child (been together 8 yrs and already have a DS)
He also doesn't really earn enough to put money aside. I was actually doing really well saving money through babysitting and helping out another childminder while she was on mat leave. Unfortunately my tax bill was a lot higher than I anticipated (1st yr self-employed and completely clueless - I thought Childminding was going to be easy!) so my savings have gone to the IR
There's no way I will get extra work between now and 22nd March. I've even lost a couple of mindees so my earnings have reduced hugely.
My money plans have all gone a bit pear shaped at the worst possible time
We are paying off a loan at the moment so maybe I could increase it - interest rate would change though and no idea what the banks charge these days. This would be a last resort.

I really don't think I've got the energy to get a 2nd job (I did think about it) and I'm not sure if I would be very employable right now anyway.

Fruity, are you paying class 2 NI contributions?

You can't claim Income support or Incapacity benefit if you are claiming Maternity allowance.

Unfortunately, for all other benefits, your DPs earnings will be taken into account when income is assessed, and you don't get help with mortgage costs, only rent.

Could you investigate if there is the option for a payment holiday on your loan? That would free up one or two month's payments, which might help.

You MUST check that you are up to date with your National Insurance contributions - it's VITAL, otherwise you won't even get maternity allowance. You can back-pay. Ring and check.

How is your mortgage going to be paid off? Can you take some money from that fund...?

Lou yes I am paying class 2 NI contributions and yes morningpaper I am up to date. It comes out of my account by direct debit.
It's the mortgage I'm worried about. DP and I pay half each per month as well as halving the bills - which cannot be reduced anymore.
The loan isn't really a concern to me as it's so minimal compared to the mortgage. I suppose if we were to take a 2 month payment holiday on the loan then that would free up a couple of hundred pounds, might be worth looking into, thanks for that thought Lou.

I need to talk to the tax credits people. Hopefully they will start up my money again due to new baby - if it works like that?

How do I sort out getting Mat allowance? Who do I call? Inland rev?
When I received it last time around I was a Nanny and my employers sorted it all out for me.

Good that everything is up to date, well done!

I found the Jobcentre really helpful with sorting out forms etc. for Mat. allowance.

You can't be expected to pay half the bills when you are not working! Does your partner earn the same as you were earning? If he earns more, he can pay more than half the bills for a start! If he was earning the same, you will be entitled to more tax credits and working tax credits etc - you really need to get some good advice about what you are entitled to. I would start with the jobcentre because a friendly person there can be REALLY useful!

How are you planning to pay your mortgage? Will you be relying on parents' savings? Can you raid this fund now?

We both earn more or less the same.
We pay our mortgage monthly from our income. No savings. Well I did have until I got a nasty surprise from the Inland Rev (being completely clueless I had no idea I had to pay part of 2008-2009 tax now)
Anyway, I have no savings now. DP certainly doesn't have any savings (he is awful with money)
Basically our bills are so high that almost all our income goes on bills/mortgage. Unfortunately we've already reduced our bills as much as we can.

I'll speak to the Job Centre. I don't even know where my nearest one is! I'll have a look at their website now.

With any luck I won't need a c-section and will be able to go back to work after 2 weeks off. I could even take this as holiday which I charge half fees for (I'm sure parents won't mind as I didn't take any holiday this year and contract states 4 weeks) This would work almost perfectly.
But then again, if c-section then I will need 6 weeks off Why can't we see into the future!

You can download the form here

Fill it in, it is quite straight forward, I found, then send it to the address listed. Make sure you include everything they ask for, or they will send it back to you.

If you go to the jobcentre, they will either give you the same form, or tell you where to download it/give you a number to phone for one.

WRT tax credits, I think it depends on why you had them stopped. If it was an overpayment, I suppose it depends on how much it was and how much is left to pay. Don't forget that during the time that you are claiming Maternity Allowance, your Maternity Allowance doesn't count as earnings for Tax Credits purposes, so your earnings for the year will your wages earned up until you claim the MA, and you can ignore the income from MA.

If I am reading you right, you earned £9000 this year. And you say your husband earns about the same. So if that is correct, joint household income of approx £18000? If that is the case, you are likely to get about £80 per week tax credits once you have two children. We get that much and we have 2 on a household income of £18000.

If that is the case, then you will be entitled to the sure start grant of £500. You need to claim any time from 25 weeks pregnant (if you can establish that your tax credits are over the minimum amount normally) up until the baby is 3 months old. BUT YOU WILL LOSE IT if you are later than that claiming.

If you are struggling to pay an interest-only mortgage and have no plans to pay off the actual debt, you really need some sound financial advice, as that is not really a long-term option. You would actually be entitled to council housing in many areas (if not all) so I think you need to be realistic and look at all your options at this point.

Hmmmm, well I though he earned the same but I'm not sure now. He's just said he earns £26000 (gross). He gets £360 p/w net. We do actually earn roughly the same per week but I have to pay all my expenses out of my income and tax too (obviously pay a lot less tax than him though because of expenses)

It's all so confusing. I wish I could afford an accountant to sort it all out for me.

I need to talk to DP and sort something out. I'm sure I'm getting stressed out about nothing, These things always work out in the end........ I hope!

Lou thanks for the link. My laptop won't let me open it though. I'll have a look and see if I can find it on the website.

If he is earning nearly 3 times your salary and you've been paying 50/50 of the bills each, I think you need to sit down and talk - he has NOT been very fair at all. Unless your debts are massive, with careful budgeting you should be able to survive for a few months without your salary.

Morningpaper we tried to get onto the council housing list when I was pregnant with DS and living at my Mum's in Fulham, London. We were so far down (practically at the bottom) that we gave up. Very fortunately my Dad gave us a deposit to get our feet on the ladder.

He is taking home £800 per month more than you

If you have been paying half the bills each then he has been spending a lot of money that you don't know about

Sitting down and working out where he's spending the money should provide you with some options for tightening your belts for a couple of months

I'll talk to him

good luck!