Question about maternity allowance.

[Librashavinganotherbiscuit]

I have just posted this in employment issues not realising there is a self-employed topic as well!

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.

TIA.

you're correct, as long as been registered self-employed for 26 weeks and you've paid class 2 for at least 13 weeks in the 66 week period you'll get 90% of the full allowance (so actually its £123.88 for 39 weeks). Just as well you didn't get around to applying for the small exemptions because then, even if you were paying class 2 as well, you'd have only qualified for the lower rate (£27 a week).

I know, it seems like a wheeze! As far as I can see, there is nothing to stop someone never having worked, getting pregnant, registering as self-employed, doing zero work but paying 13 weeks of class 2 contributions before the baby is born (about £32) then raking in the full maternity allowance.

Thank you Llanarth.