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Talk about every stage of pregnancy, from early symptoms to preparing for birth.

Are you self-employed? (maternity allowance)

45 replies

Snowlet · 21/01/2014 08:56

I've learned something quite crucial, and thought I should share it

I'm self-employed, and don't make very much. I held a 'small earnings exception certificate' until a few months ago. I also voluntarily pay Class 2 national insurance and always have, even though I'm not required to.

However, even if you're paying your full Class 2, if you have a 'small earnings exception certificate', you are NOT ENTITLED TO FULL MATERNITY ALLOWANCE.

There is time to correct this if you're not very far along, as you need to pay Class 2 (without the certificate) for 15 weeks to qualify for full maternity allowance. But I could see this completely buggering up some people's plans if they don't realise they're not okay, even though they're paying Class 2. It's the difference between £30 a week and £140 a week (roughly) so, real money.

I hope maybe this helps someone. I find it bonkers.

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CrispyFB · 28/01/2014 22:29

There's no minimum amount for self-employment so long as your contributions are up to date! The website is confusing as it refers to things like £30/week or similar, but these things don't apply to the truly self-employed.

I'm in a similar situation to you - still do the odd thing here and there but not as much as I did, but I still qualify for the full amount as I'm up to date with my contributions. And that's official as I've finally got the paperwork saying so.

Snowlet · 29/01/2014 09:03

Also Joanna, it's never fraud to just apply, as long as what you put in your application is the truth! If you're registered with HMRC and file taxes every year for your business, you're fine to apply, no matter what you make.

Crispy, congratulations! I've got five more weeks until I can apply. Hoping it all goes well. Did you go to the Job Centre or do it through the post?

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Rootvegetables · 29/01/2014 09:44

Ooo this thread looks very interesting I wondered if someone could help me out. I have been in the process of registering as a childminder for the last year and finally got my certificate last week, 2 days after finding out I'm pregnant with twins. It's unlikely il get much work in the next few months as in my current situation wouldn't be my first choice! But I might get a bit here and there, I'm currently 12 weeks is there anyway I could be entitled? I was hoping to be earning full time money by now.

Rootvegetables · 29/01/2014 09:45

Sorry I meant I wouldn't choose me as a childminder! Childminders do need to be registered as self employed by the way.

Rockchick1984 · 29/01/2014 09:55

Fairly sure if you've only just registered as self employed you won't qualify Root sorry - eligibility here

Rootvegetables · 29/01/2014 12:32

Well it was a nice idea! Thanks rock chick.

lucyfluff · 29/01/2014 15:56

Thanks crispy - I was actually going to message you as Im only earning about £20 a week at the moment....and wasnt sure if the minimum online was accurate!!!

Good news on yours being sorted Smile

McBaby · 29/01/2014 16:10

I would register now if your activly looking for work which is when you are obliged to register with HMRC as self employed even if it takes you 3 years to find work. You need 26 weeks registered before you will qualify.

CrispyFB · 29/01/2014 22:55

Snowlet - I did it all through the post. Filled out the form on the computer at 26 weeks, printed it out, signed it, and then posted it.

I've yet to receive a penny, but I have had the letter telling me what I am entitled to at least.. I then had to fill in another form to say when I wanted it to start from despite writing this down in the "comments" box on the first form Hmm That was ten days ago and I've heard nothing else yet. So far they owe me 3 weeks worth backdated and counting..

Rootvegetables - this is true, you do need to have been working a certain amount of time. Have you done any paid work at all in the last 66 weeks before your due date? As if you've done 26 weeks somewhere in all that, you will qualify in some way. You can backdate your self employment registration to the date you got your certificate as that's when you would have been legally available for work.

lucyfluff - It is ridiculously confusing how they word it. Honestly, I was sure I wasn't going to get a penny from looking at it several times, and I wondered how I managed to before. Then I spotted some small section somewhere and remembered, but they do not make it clear or obvious AT ALL. I'm sure that's deliberate.

For instance, there's this taken from here: www.gov.uk/maternity-allowance/eligibility

"You might get Maternity Allowance if:

  • you’re employed, but you can’t get Statutory Maternity Pay
  • you’re self-employed and paying Class 2 National Insurance contributions
  • you’re self-employed and have a Small Earnings Exception certificate
  • you’ve recently stopped working

Also, you must have:

  • been employed or self-employed for at least 26 weeks in the 66 weeks before the week your baby is due
  • been earning at least £30 a week over any 13 week period"

That, and a similar sort of document elsewhere, strongly implies, no, it actually STATES or at least seems to (there's no "or" mentioned) that being self employed means you need to be earning over £30/week. There is NO mention of anything else. In fact if you click on their eligibility calculator, it says I would get nothing. Yep.

Yet if you look here, on a link hidden away, it's another story: www.nidirect.gov.uk/maternity-allowance-notes.pdf?rev=4

"If you are self-employed you are required by law
to register as self-employed with HM Revenue &
Customs. If you do not register, or register late, you
may lose some or all of your entitlement to Maternity
Allowance.
If you

  • are registered as self-employed, and
  • have paid Class 2 National Insurance contributions, and
  • do not hold a Small Earnings Exception certificate you will be treated as having enough weekly earnings to result in the standard rate of MA for any week covered by that"

And this is HIDDEN in a PDF under a link that you only click on if you go on to apply, not in any of the so-called "clear" headline documents. You only find it if you dig, and frankly who is going to dig for it if you didn't know it was there? You'd believe the first thing you read of course especially after running the calculator, and not bother trying to apply.

Nevertheless, it is true, there IS no minimum or they wouldn't have paid me a penny for my last pregnancy nor authorise it for this one either.

Gits for being so misleading, ambiguous and hiding stuff away, honestly.

And let's not get started on the whole Small Earnings Exception Certificate thing as in the OP.. another bunch of misleading and potentially very costly crap too! Angry

Anyway, I hope all that helps somebody!! Grin

nicx240187 · 30/01/2014 08:30

Hi this is really helpful :)
Just wondering if you do qualify for SMP while self employed and follow all the rules.
How much do you get and how is it paid?

As I'm assuming a normal employee for a company get paid as they would a monthly wage.
But a self employed person wouldn't have that? Do you get back from hmrc?

Thanks

Rockchick1984 · 30/01/2014 08:36

Nic your question isn't clear - if you qualify for SMP through an employer you can't then also claim MA, is that what you mean?

nicx240187 · 30/01/2014 10:04

No sorry. If your self employed only and have paid your nic etc. And qualify for maternity etc.

Then how would you be paid?

CrispyFB · 30/01/2014 11:49

You give your bank account details when you apply, and can choose to get paid 2 or 4 weekly by HMRC, just like a regular benefit.

lucyfluff · 30/01/2014 14:27

Thanks again crispy Smile they are very naughty not making it clear online, especially like you say if you wouldnt question what is written!!!

Will def be applying when the time comes Smile

CrispyFB · 30/01/2014 19:40

I just sent them a message complaining about the wording (specifically the part following "Also, you must have:". Doubt it will get changed but I guess if nobody tells them (although I am pretty sure some people do..) nothing will change.

Good luck with your application!!

gunwalloe · 16/03/2014 20:47

Sorry to resurrect a old thread but I just wanted to make sure ive read and understood right :)

Im self employed but have been paying class 4 national insurance. Im 11 weeks pregnant so do I have time to switch to class 2 and qualify for maternity allowance? Or have I left it to late?

gunwalloe · 17/03/2014 08:23

Wanted to add I've been self employed for over 3 years

Snowlet · 17/03/2014 11:04

gunwalloe you should have time yes, switch to class 2 immediately and also make sure you don't have a sodding Small Earnings Exception certificate! You need to pay class 2 for 13 weeks before your due date.

Good luck!

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gunwalloe · 17/03/2014 13:52

Thanks snowlet I phoned them about starting to pay and it turns out im already signed up to pay class 2 from when my small earnings exception ran out in 2012 they've been sending bills to my old address im £200 in arrears but at least once paid I know ive got enough payments behind me phew

Snowlet · 18/03/2014 07:05

Excellent! it's all worked out.... definitely worth paying the class 2, I sooooo wish this whole set-up wasn't so infuriatingly anti-woman, tell your friends! :)

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