Maternity allowance

[Angeandgaz]

Hi,

I am just filling in the form to claim maternity allowance.

I will not be physically working whilst I have a maternity leave, however my business will be still running therefore I will still be receiving an income from it.

Does this mean that I will not be entitled to the allowance?

Any advice would be much appreciated as I can't find the answer anywhere on the gov websites

thanks

Ange :)

The gov web sites are not very helpful - the best you will get is NI17a.

The law is quite clear (my emphasis): "A woman shall be disqualified for receiving a maternity allowance if ... she does any work in employment as an employed or self-employed earner..." and I am not aware that DWP have ever misinterpreted this: certainly all the forms ask you if you have 'done any work' not if you have 'received any income' so they would never know anyway.

I have been ploughing through the govt websites which are not user friendly as I am a Phoenix Cards Trader and also sell Usborne Books from home. If you are registered as self employed and have been paying your NI contributions you are allowed 10 KIT (Keep in Touch) days so I will have to notify them if I do any xmas sales during my maternity leave period and count these as my KIT days. On those days I am allowed to earn money as I understand it - however once those 10 days are up and I receive any further income I will have to notify them and my Maternity allowance will cease.

I THINK this is the case anyway - as you say its not very clear - good luck!

What makes you think that Kirsty? The statute refers to doing work not receiving income: I appreciate that for you that may be the same thing but not for the OP.

Also MA does not necessarily cease if you work on more than the 10 KIT days, they may (should) only deduct MA for the additional days you actually work.

You will however fall foul of the inequitable and nonsensical position on partial days worked - if someone sends you an order for a book which you have in stock and all you do is wrap it up and post it, that loses you a whole day's MA. And if you take the cheque to the bank the next day while you are out shopping that should in theory be another day! I would love to see the DWP argue this in court though.

Best bet would be to speak to a tax advisor.

If you are employed by your company (pay PAYE etc) then I would have thought your company could pay you maternity pay rather than allowance (and reclaim the statutory part on the PAYE/NI payment each month).