Self Employed and Maternity Allowance - tax??

[FluffyJawsOfDoom]

Hi

I was PAYE for years, then got made redundant when I was 23 weeks pregnant. Instead of SMP, I qualify for MA and have applied, been approved etc. In the meantime I found 4 months of freelancing work to tide me over and registered as self employed (the MA dept know about this), and I go on "maternity leave" from that next week.

What usually happens with the tax and NI with self employed people getting MA? Will I receive the full MA and have to declare it in my tax return next April, or will tax and NI be deducted by the government before it's paid to me (and therefore I'll have to sort out an exemption for the self-employed NI bit)?

Neither - at least, that's my understanding. Maternity Allowance - unlike SMP - is untaxed, however, unlike SMP you cannot earn self employed income while on maternity leave if receiving MA; outside of the ten Keeping In Touch days that you're allowed.

Wow, thanks Mama, I'd never have guessed that!! :)