Anyone else self employed and needs to claim Maternity Allowance?

[Parker23]

Are there any other MTB out there who are self employed and will need to claim for Maternity Allowance? I'm a freelance Illustrator and so obviously I cannot get any Statutory Maternity Pay.

I've been told I should be able to claim MA and I've looked up all the details online at www.direct.gov.uk As far as I can see I will qualify. I'm just a bit confused about all the details and I don't want to mess up my application.

If there's anyone out there who is familiar with the rules and regs of this particular application can you maybe give me some advice? My details are as follows...

I was in full time employment until July 2010 when my employer closed the business down. I was then job searching through August and September and then from Oct 2010 to date I have been working as an independent contractor for an internet marketing company. I am therefor responsible for my own accounts but as we have not reached the end of the financial year I have not paid any taxes or NI. Will this effect my application and does anyone know how much my husband can earn before it effects my entitlement?

It's giving me a headache and I just need someone in the know to confirm whether there's a chance I'll be entitled to it.

Thanks!

I'm guessing as we haven't reached Oct 2010 you mean Oct 2009, taking that as a starting point even if you haven't yet been working for a full tax year you should have registered as self-emplyed with HRMC (www.hmrc.gov.uk/selfemployed/iwtregister-as-self-employed.htm) and be paying NI contributions. You need to register as self employed ASAP and you will have to back pay NI (and you might be fined as I think you have to register as SE within 3 months of becoming SE).
What DWP will look at in regard with MA is have you worked for 26 weeks out of the 66 weeks proceeding your LO due date. To do this if you are SE they talk to the NI department and see how many Class 2 contributions you have made (i.e. have you paid for at least 26 weeks out of the proceeding 66 weeks). They don't care how much you actually earn as it's a set amount (which will be less if you have a NI small earnings exemption certificate) so it doesn't matter if you haven't filed a tax return yet.

Your DH is irrelevent.

All better explained here

Sorry yes I meant October 2009

Right, I am registered as self employed and have been for a number of years but I wasn't earning anything through self employment until I started this independent contractor work in October 2009.

Therefor, prior to this new work I wasn't paying NI and had an exemption certificate. However since starting this work my certificate has expired and I assumed I would therefor need to pay NI contributions. I haven't actually contacted the NI department yet though so if I get in touch with them and let them know the details of my self employment and pay any back dated NI contributions, do you think I will then be eligible?

Really appreciate your help with this. It's been such a transitional time for me with finishing one job and then having to adapt to self employment and all the paper work etc that comes with that! I just want to make sure I understand all the ins and outs before I apply.

Oh and my due date is 3rd Jan 2011 by the way.

Hi there,

I'm self employed and due on 23 Dec so will be attempting to claim MA.

I became self employed in May and registered straight away with HMRC. I then paid my first lot of NI three months later - it is just a minimum statutory amount (around £20) until you file your first accounts, but ensures you are still on the system so to speak.

I would phone up HMRC immediately and arrange to pay your NI. This should entitle you to MA.

Then at your 25 week or 28 week check you get your GP or midwife you sign you MATB1 form which you then send off with the application for MA you pick up from JobCentrePlus.

I have got the form but will have to wait until I see my midwife in a couple of weeks for the 28 week check before I can apply.
Hope this helps

Hope you don't mind me joining in with possibly ignorant questions :)

I am self employed, but only work about 10 hours for cash in hand, which I declare, but i don't earn enough to pay tax. I do pay NI though.

I don't have accounts, I just write in a diary how much I am paid, when I'm paid - how do I go about proving how much I earn (about £80 - £90 per week) when I come to apply for MA (due end of Jan, was hoping to stop work before Christmas)

TIA if anyone can help :)

I'm self employed and I got MA.

What they base it on is th NI contributions. You need to be on the NI database for the MA payments to start, thats all they look at.
They don't look at tax returns at all.
As long as you are registered self employed and appear on the NI register you will qualify.

NoMilkToday there is a bizarre loophole in that IF you pay Class 2 contributions BUT earn under £124 a week you will actual end up getting more MA (i.e. £124 a week) than you earn.....

"I then paid my first lot of NI three months later - it is just a minimum statutory amount (around £20) until you file your first accounts, but ensures you are still on the system so to speak."

Not strictly true, for instance if you registered as self-employed on the 7th April 2010, you would start paying NI either quarterly or monthly but during the 2010/2011 year so when you eventually file your tax return for 2010/2011 you would be up to date on your NI already for that time period. NI like to keep themselves up to date, tax will be paid in arrears.

I have been told that as MA is taxable income I will be able to claim Working Tax Credits as well as MA. Has anyone else heard this or know if it's true?

Maternity allowance ISN'T taxable:

Benefits that aren't taxed
There are some benefits that you don't have to pay tax on. The most common benefits that aren't taxed are:

Attendance Allowance
Back to Work Bonus
Bereavement Payment
Child Benefit
Child's Special Allowance
Child Tax Credits
Cold Weather Payments
Council Tax Benefit
Constant Attendance Allowance
Disability Living Allowance
Exceptionally Severe Disablement Allowance
Guardian's Allowance
Housing Benefit
Incapacity Benefit for the first 28 weeks of entitlement
Income Support - taxable if you're on strike during a trade dispute
Employment and Support Allowance - income-related
Industrial Injuries Benefit
Invalidity Benefit - replaced by Incapacity Benefit from April 1995 but still payable if the invalidity started before April 1995
Maternity Allowance
Pensioner's Christmas Bonus
Reduced Earnings Allowance
Retirement Allowance
Severe Disablement Allowance
Social Fund payments (and interest-free loans) to people on a low income to help with maternity expenses, funeral costs, financial hardship and as community care grants
War Widow's Pension - if you're entitled to a War Widow's Pension and it's not paid to you, or you're paid less because you get another benefit, you may not have to pay tax on some of the other benefit
Winter Fuel Payment
Working Tax Credit

list here

Ok so looking at these replies I'm guessing that as long as I contact the NI department, find out how much I owe on contributions from the time I started sub contracting (Oct 2009) and pay that, I should be ok?

I'm terrified that I won't get MA. We'll be totally stuffed if I don't qualify!

i need to claim this soon as due in Nov. I spoke to benefits people a few months back, and it is paid at different levels, so if you haven't earned more than an average of £124 week during test period then you won't get the full amount - i think the basic amount is something like £30 week, and you get the lower of the £124 amount, or 90% of the average amount you earned during the test period - which from memory is 13 weeks of your choice which don't have to be consecutive.

So if you pay your NI, i believe you will be eligible, but it depends on how much you have earned whilst self employed as to whether you get the full £124 week or not....

"So if you pay your NI, i believe you will be eligible, but it depends on how much you have earned whilst self employed as to whether you get the full £124 week or not...."

Nope if you are SE and pay Class 2 NI then you get the flat rate of £124 a week doesn't matter how much you earn. HOWEVER if you are SE BUT have a small earnings exemption certificate for NI then you get a flat rate of something like £30. It only gets more complicated to work out with the 90% bit if you are employed but you don't qualify for SMP but you do qualify for MA.

Thanks Librashavinganotherbiscuit you've been really helpful. I think I finally get it now!

Parker, you'll definately get it.

I was in a similar position to you but when I applied I had to wait a bit as I wasn't yet on the NI database as self employed. Once the information filtered through to the right people I started getting the payments which were £124.
Hope it works out for you, don't forget to claim the sure start grant too if you are eligable.

My friend is SE but holds a small earnings certificate. She has paid enough class 2 NI but has been told by citizens advice that she's still only entitled to £30 per week because of the certificate, apparently it's to do with some new law. I don't get this and think they are wrong does anyone have any idea about this?