Small business owner and right to claim Maternity Allowance

jm1

Hi
I'm a small business owner, paying Class 2 NI contributions, and am pregnant. When I go on maternity leave, if my business is still making a profit, can I still claim Maternity Allowance if I don't pay myself a wage during my maternity leave?
Many thanks for any advice.

jen_br

As long as you have been paying your contributions during the 13 week test peroid u will get full Maternity pay I believe its MA.

stazi

More info about MA is here-
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/Expectingorbringingupchildren/DG_10018869

jm1

Thank you both so much for your prompt replies.

I think I've paid contributions for at least 10 out of the 13 weeks. Does this mean I'm going to not get the full amount of Maternity Allowance, but still a good chunk of it?

Also, if I do get the Maternity Allowance, I'm guessing this means I can't continue to draw a wage from the profit my business continues to make whilst I'm accepting the Maternity Allowance?

karenx

no you can't get paid or even work. whole point of ma is to allow you time off work with your baby. However if you need to get back to work you would stop the ma first.

jm1

Thanks, that's what I was guessing but thought I'd just double check!

Do you know if I'll get 10/13 of the full amount if I've paid NI contributions for 10 out of the 13 weeks test period?

karenx

unsure how it works with self employed. I got ma as an employer.
I had to of worked at least 26 weeks out of 66 to qualify. And the amount I got depended on how much I earnt. Unsure if you had to of paid ni for the full period to qualify or not

stazi

To qualify for MA at the max rate, you must pay at least 13 Class 2 S/E contributions in your Test Period.

jm1

Thanks.

Unfortunately I know I won't get the max amount as I had a small earnings exemption certificate in place which I only remembered to cancel a few weeks into my test period. I just wondered if I'll still get a good part of the max MA as I'm managing to pay 10 out of the 13 weeks' worth of contributions, even though it means I'm paying contributions for bills for NI I haven't even received yet!

stazi

Contact HMRC and offer to pay any outstanding Class 2 NIC now. An SEEC is false economy, as £2.50ish pw as Class 2 NIC is worth paying for to go towards all State benefits except JSA.

jm1

I offered to do that, but they said they'd ignore any NI contributions which would cover the period when the small earnings exemption certificate was in place.... but I did make sure they told me how much is owing for the remainder of the test period (which ends 5th June) so I could pay for that bit in advance, and retrospectively for the amount that's fallen due since the certificate was cancelled.

I guess all I can do now is wait and see how they decide to use their discretion! Fingers crossed I still get a decent amount.....

Thanks for all your advice!