SMP vs maternity allowance

[Fiveleaves]

I am in a quandary. I was on maternity leave for a year until September 2013 but rather than return to work, started a new job on a short term contract (due to having 1 year old and new job being more flexible). Contract comes to an end end of jan and I am 4 months pregnant but I think I am due maternity allowance. As far as I can see you provide 4 pay slips from any 4 months In the past 66 weeks.

However

I stayed 'on the books' in my old job (delivering sessional training on a zero hours contract) and my old boss has offered me work from feb-June) Less than half a day a week but this amount of time is fine as I want to set up my own business and will use the time to plan and make contacts through work.

Bear with me...if I return to my old job for 5 months presumably they will pay me SMP, however, I'll only be earning 50 quid a week and the 4 months pay slips I have from contract job are for £1500 per month so MA would be calculated on these. Would it be silly to earn £200 a month? Would it bring down my average pay meaning crap SMP? Would I be better off just not working until mat leave (would not be claiming any benefits) so that I can have better money for 9 months through MA or is there a minimum amount for SMP? There is nowhere to get unbiased advice! Is MA a single amount or does it vary? All gov advice online is wooly, just says you 'may' be entitled to this or that...

Any advice appreciated!

You have to have worked 26 weeks out of the 66 weeks prior to starting mat leave in order to be eligible for maternity allowance, will you have reached this?

If you earn less than smp you don't get the full smp amount, I think you just get your normal weekly wage.

Yeah, I will have been continually employed (for 12 years in fact...in 4 different jobs). Never not been in work which is why the timing of this is so annoying. Was in last job for 4 years (inc year on mat leave which counts) then this one for almost 20 weeks...but it will end when 18 weeks preg...

Oh crap sanch1. That's what I feared. Have been earning proper money but it's only for the next 5 months it will be so pitifully low due to availability of work and I can't do a well paid full time temp contract due to childcare only being part time...Christ! The amount of tax I have paid in the past!

If you are eligible for SMP then you can't have MA.

When you say you are 'on the books' of your old employer - as an employee or a contractor?

Employee status always takes precedence. So you can end up with a situation where you'd get full MA, but you are also employed and therefore get SMP at a rate far lower than the full level.

Worth doing all the maths. Your SMP is capped, not a flat amount. so if you earn a low amount you won't get the full SMP.

As an employee penguins but on a zero hours contract (but always had lots of work and always wanted the flexibility due to other commitments). I think the situation you describe is the one I will face if I return to my old job. I think I may be better off not returning unless I can be guaranteed more work that would put my earnings at least at 150 a week...

Have you tried putting different scenarios in here to see what it comes out with?

I have thanks rockchick. The only confusion is returning to a previous job. Would get MA if I started new job but easier said than done at almost 5 months preg when I can only work part time set days...

The thing is, I think SMP would be worked out by employer so the higher earnings from the employer I did a 5 month contract with will not be taken into account...that sucks!

When I last looked into it (for a friend about five years ago) that was true Fiveleaves.

It went: are you eligible for SMP? If yes, calculate SMP. If no, are you eligible for MA?

There was no option to skip the SMP if the MA would have come out higher.

Thanks penguin really helpful. My work life has always been straightforward...until now when I need it to be! I do wonder if not being continuously employed by same employer (albeit not working for them but being 'on the books' will count as broken employment meaning I'll get MA. Argh! Better just see if I can get more hours!

I have just not qualified for SMP twice now - once by a couple of weeks, this time by a few hundred pounds per year.

Don't know if it applies to you at all but if you are on a lowish income then MA doesn't count as taxable income for the purposes of tax credits, so if you are near the TC threshold and can manipulate the situation it may be worth doing it. Also MA can be paid on top of any occupational mat pay whereas if you are on SMP then SMP plus occ mat pay can't equal more than your normal pay - there is no such rule about MA so I will be receiving MORE in maternity pay than I actually earn for 8 weeks this time. (Its only about £40 a week more as I earn so little, but still.)

Thanks vj32 but I don't think we are eligible for tax credits as I actually have a high salary / hourly rate but just won't be doing many hours!

Are you able to stop being 'employed' by your old job? But then they take you on a freelance basis?

I don't think so princess but thanks for the suggestion. I think I will just turn down the work if it isn't enough to guarantee decent maternity pay...annoying!

My first time on here, I am a married woman I work 2 part-time jobs 28hrs main job which is a non contract job and 12hrs a week cleaninng job. I believe I would get SMP from main employer, I know I don't qualify for SMP from 2nd employer. Can I claim Maternity Allowance from the job centre (through 2nd job) also? would I qualify for maternity grant/child credits/working tax credits? is it a good idea to take mortgage holiday with your bank? Do you claim through HRMC or through Job Centre?