Mat Allowance Experts?

[lamby12]

Hi there any experts in how maternity allowance works?

I'm not pregnant, but we've been trying to conceive a second child for a long time. I'm stuck in a job I don't like but I've been gradually building my own business in something creative on the side. I've always assumed I needed to stay in my job to get any mat pay, but the length of time trying to conceive has led me to feel like I'm putting my life on hold waiting for this so I've started looking into what I'd get as self employed.

It seems that maternity allowance is the same as what id get in my job any way (we don't get any 'enhanced mat pay, just statutory) as long as I pay class 2 NI.

I've already been registered as self employed with HMRC for the last 2 years but haven't registered any profit because I haven't made any. However now I've got serious with the business I am making a profit, but due to the nature of the creative work it comes in peaks, rather than a steady weekly income.

Assuming I take the plunge and leave my job to build the business - My question is, am I right in thinking if I pay class 2 NI (which doesn't seem to be much?!) I'll automatically qualify for mat allowance as and when needed? Or HMRC want actual evidence of weekly earnings to show your exact income? I sell things through my online shop, so presumably that would be the evidence?

I know this is all a way off but I like to make sure I'm planned and I'd hate to end up with no mat pay.

Thanks
X

www.gov.uk/maternity-allowance/eligibility

Still need to have been self employed for 26 weeks out of last 66 weeks and have earned at least £30 a week in 13 of those weeks.

You then need sufficient class 2 NI contributions but if you don't have enough they will let you pay them early to get the MA

Thanks @dementedpixie do you know how you evidence that your earning £30 a week and self employed each week? I've only ever done the self assessment at the end of the year which for this coming end of I year I will be recording profits but it's all on an annual basis. How do they get into the detail of weeks?

I should legitimately fit the bill so not trying to swiz things I just want to make sure I have any admin / register anything I'm supposed to.

Thanks for your reply!

I'm not sure how you evidence it or whether DWP look at it from their end to check your details.

I've just applied for my MA as self employed and baby due next month.

It was my first year of trading last tax year and I made a loss due to start up costs. This year so far I'm making a healthy profit and more than enough to qualify for Max MA. However nowhere on the form was there any place to evidence actual income. I haven't paid any NI yet so I called them to make a payment and was told they would send me a payment request to top up to enough NI to receive the full MA.

Im expecting a decision/further info any day so I'll let you know what they want me to do!!

I can confirm that you are not required to evidence your earnings for MA. As long as you are registered self employed and you have paid enough NICs you will be awarded the full amount.

I was asked to pay £39 to top up my NICs and was then awarded the full amount of MA despite only having registered a loss on my current self employment.

@passthemustard

I can confirm that you are not required to evidence your earnings for MA. As long as you are registered self employed and you have paid enough NICs you will be awarded the full amount.

I was asked to pay £39 to top up my NICs and was then awarded the full amount of MA despite only having registered a loss on my current self employment.

Can I ask you what the full amount is - I thought it was 90% of current earnings for 6 weeks - do you know if there's an upper limit to this - or have I got the wrong end of the stick?

You’re thinking of statutory maternity pay @Copperzippedup - there’s no 90% element to MA, just the fixed rate.

Even with mat pay it isnt necessarily 90% of pay, that's only if you are a low earner. Its capped.

There are 3 different levels of payment for maternity allowance. If you go to the .Gov website it explains everything, and there's a mat allowance calculator.

@Hollyhocksarenotmessy

Even with mat pay it isnt necessarily 90% of pay, that's only if you are a low earner. Its capped.

There are 3 different levels of payment for maternity allowance. If you go to the .Gov website it explains everything, and there's a mat allowance calculator.

Can you post the link to this please - I have looked and I can’t see the cap on statutory maternity leave.

Sorry I am still getting stat Maternity pay and Maternity pay mixed up...ignore please😂