Maternity Allowance & Self Employed

humpy07

My sister-in-law is currently studying Hair & Beauty at college, and has a small little business doing mobile hairdressing, for which she is registered as self employed, and has been paying the Class 2 contributions. For the past few weeks she has not had any clients, so has no income (not really a big deal as she lives at home with mum, and no bills etc).

She recently found out that she is pregnant, and is looking at claiming Maternity Allowance, as she will have paid Class 2 contributions for 26 weeks prior to the arrival.

Will she still be allowed to claim this benefit, even if she doesn't have any clients (hence no income) between now and the start of the MA claim?

Thanks

Humpy (1st time poster):j

karenx

You can claim it from 29 weeks. How much does she make per week? As that depends on how much she will get?
She cant continue to work either once she is claiming MA.

Becles

humpy07 wrote: »

Will she still be allowed to claim this benefit, even if she doesn't have any clients (hence no income) between now and the start of the MA claim?

Yes - the rules for self employment state she will get one of two rates.

If she has a small earnings certificate, she'll get £27 a week.

If she doesn't have the certificate and has paid the required class 2 NI, she'll get the full rate which is about £120 a week.

This applies regardless of your actual earnings.

humpy07

Thanks Karen and Becles... that's cleared up the situation somewhat.

Although, isn't there a rule that you have to earn at least £30 a week to be entitled? She's concerned that she won't always earn this, and will therefore not be eligible.

I have already told her that she can't continue to work whilst receiving MA, although I think she will continue with the Class 2 payments.

Humpy

Becles

AFAIK the £30 MAT is only applicable to employed ladies.

For self employed you are assumed to have earned enough to claim, even though you might not have earned that much.

The full guidelines are here, if she wants to wade through it!
http://www.dwp.gov.uk/publications/specialist-guides/technical-guidance/ni17a-a-guide-to-maternity/