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Maternity allowance and minimum earnings - do I need to pay NI?

6 replies

spewgloriousspew · 21/04/2012 10:58

I am confused beyond belief.

I'm not currently pregnant, but we are trying for a second baby. I am now self-employed but don't earn the £30/week that it seems is needed to claim MA.

But, then I read the DWP MA info sheet and I now I think I may be able to claim as/when I get pregnant.

I was going to pay my Class 2 NICs voluntarily even though I would be eligible for an exemption (earn under £5315/year). Then I saw that you had to earn £30/week, which I don't, so thought ok so I don't need to pay NI.

Then I read this:

"If you are self-employed and do not have a small earnings exception certificate, for any week covered by a Class 2 NI contribution you will be treated as having enough earnings to result in the standard rate of MA, payable at the end of the week covered by a Class 2 NI contribution. This means that:

From 6 April 2009 treated as earning £136.73
From 12 April 2010 treated as earning £138.75
From 11 April 2011 treated as earning £143.03
Jobcentre Plus will ask HM Revenue & Customs to confirm the information you give about your Class 2 NI contributions on your MA claim form.

If you are self-employed and hold a small earnings exception certificate, you will be treated as having earnings equal to the MAT at the end of any week covered by your certificate. This means you are treated as earning £30 a week. This applies even if you pay a class 2 NI contribution for a week which is also covered by the certificate. Send this certificate in with your MA claim form."

Does this mean that I can claim it? If I am self-employed they treat you as earning the minimum if you pay NICs, regardless? But then the bit about the exception certificate implies that your certificate means you are treated as earning the threshold amount, too.

So,my question is, do I need to pay NI?! I phoned HMRC and they didn't give me a straight answer.

I know this is all hypothetical as I'm not yet pregnant, just thinking ahead and determining whether to apply for an exception certificate.

OP posts:
craftynclothy · 21/04/2012 11:05

If you pay the NI you will get the full rate of MA.

This is what I did. My business was earning a pittance but I'd not got round to doing a small earnings exemption for so had paid all the NI and got far more MA than I'd have earned running the business.

craftynclothy · 21/04/2012 11:06

Just to add: I don't know how it works if you already have the certificate.

spewgloriousspew · 21/04/2012 11:16

Thanks. Sounds like it's best to pay NI, then. They don't make it easy to understand, do they?!

I work freelance just to earn some pocket money and to bulk out my husband's income. Rarely earn more than £80/month. Not as if I'm earning mega-bucks!

Thanks again, that's really helpful Smile.

OP posts:
TalkinPeace2 · 21/04/2012 21:55

many moons ago I wrote a cheque for £178 to pay up my NI and got £790 MA back !!

spewgloriousspew · 22/04/2012 17:54

Righty, NI it is!

OP posts:
Elisse · 03/05/2012 20:20

If you register as self employed and pay FULL class 2 NI contributions for a certain number of weeks within the test period (time frames on the MA website) then you will get full MA regardless of what you've been earning.

If you have a small earnings exemption certificate you won't get the full amount (or any) MA.

All the best,

Elissa
www.filmsinbloom.co.uk

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