Small Earnings Exemption and Maternity Allowance

[Laugs]

Hi,

I hope someone can help with this as I am getting very confused...

I am a freelancer and currently hold a Small Earnings Exemption from paying NI.

I will earn around 4000 this tax year.
So, an average week if that was divided by 52 = £76

However, because I am freelance, and it tends to be all or nothing, if I were to pick my 13 highest earning weeks, I would easily be in within the maximum earnings of £117 bracket for MA.

So, what I'm not sure of is whether I can just pick my 13 hughest earning weeks, despite the huge difference between my income in those weeks and my average income over the whole year?

(BTW, not pregnant yet, just trying to work out if we can afford it)

bump

If you have a small earnings exception certificate, you are deemed to have earned the minimum threshold for MA, so will only get £30 per week MA.

If you are not yet pregnant, you may be better to give up your SEC (I don't know how you do this?) and to start paying your class 2 NI contributions, (£2.40 pw) which would then entitle you to full rate MA.

You need to be aware that even if you pay Class 2 NIs, if you hold a SEC, you will only get the minimum MA. So you really need to find out how to relinquish that asap.

Thanks lou031205, I didn't see your message until now.

I am getting really frustrated trying to sort this out. I rang the NI Contributions Office, who referred me to the Jobcentre, who only referred me to a website I had already read!

NI Contributions Office seemed to imply that I can wait until I become pregnant, then start paying, but I'm worried in case this is risky. I can't afford to only earn £30 a week.

When you say, "even if you pay Class 2 NIs, if you hold a SEC, you will only get the minimum MA" do you mean the minimum as is £30 or the minimum as in £117?

And if I get rid of my SEC now, are there any implications except paying £2.40 a week?

Thanks so much for your help!!

If you google 'decision makers guide for maternity allowance' you can find the handbook.

In it, it states that if you hold a SEC, even if you pay Class 2's, you will be treated as having an income to satisfy the lowest rate of MA.

I don't know the implications of giving up a SEC, sorry.

Thanks, I'll look it up

I am in the exact same boat. Laugs- did you find any useful links?

Still trying to work out the whole self employed malarky and Mat Allowance on top is confuzzling!