A question about maternity allowance.

[Librashavinganotherbiscuit]

I started my own company on 20th March 2010, I earn £35 a week for doing a couple of hours one day a week. I am due DC2 on 3rd November 2010. It looks like I am just going to scrap the 26 weeks of the preceeding 66 weeks employment rule for maternity allowance (intend to work until at least end of september).
I pay class 2 national insurance contributions as I never got round to sending off my small earnings exception certificate paper work and have a DD from my bank account to pay the NI.

Question
Does this mean that despite the fact I only earn £35 a week because I pay class 2 NI contributions AND I'm self-employed I will qualify for the £138.75 a week MA?

This seems odd and almost fraud to me.

I think you need to have been self employed for a minimum amount of time (1-2 yrs) before you can claim anything, despite NI contributions. I can't remember the exact timing, but was unable to claim myself due to being self-employed for less than the given period. There should be a website that has the answers...

There should be....

thanks will continue to look.

According to direct gov, you should qualify for Maternity Allowance, as long as you have been earning for 26 weeks of the preceding 66.

However, the amount you will get will be the LOWER of £124.88 and 90% of your average weekly earnings, ie about £31.50

You are right about the £124 figure but actually it will be that (i.e. £124 not £31) because as I am self-employed all they check is that I have paid NI contributions NOT what I have actually earnt.

Sorry, but no, you'll get the £31.

From the DWP website here:

Rates of MA

If you satisfy the employment rule and the earnings rule, you will be entitled to MA for a maximum period of 39 weeks.

The amount you get depends on your gross average weekly earnings. You will get the standard rate of MA, which is £124.88 a week (from 12 April 2010 ) or 90 per cent of your gross average weekly earnings, if this calculation results in a figure which is less than the standard rate of MA.

oooh shoot me, I wish there was an edit button.

You're absolutely right, from the same site:

If you have paid Class 2 NI contributions at the end of each week in your 13 week earnings period, you will be treated as having enough earnings to receive standard rate MA.

So it looks as though you do get standard rate MA.

Thinking on it some more, that's bonkers, and I can totally see why your OP said it felt like fraud.

Let's say I was a SAHM, with a partner that worked and we received no benefits. If I got pregnant, I could claim I was self-employed, pay £2.40 per week for 26 weeks of my pregnancy while doing an hour a week 'Research' in setting up a business, then claim full maternity allowance of £124.88 for 39 weeks.

That's mad.

Regarding your question over minimum time, though, both direct gov and DWP confirm that you need to work for 26 weeks in the last 66.