maternity allowance - self-employed

[alib]

Does anyone know what happens to my maternity allowance if I receive and cash late payments during my claim period for work done months ago? Must I declare it? (will I get into trouble if I don't?!)

[The Nappy Lady]

Hi Ali,

It shouldn't affect your maternity allowance because it isn't work you are doing during your leave, it is just as you say late payment....but when you do your tax return all your income (including your MA I am sorry to say) will be treated as income and you will be taxed on it :-(

I just did my 08-09 tax return and have discovered this to my disgust, I kind of assumed that MA wouldn't be taxed...but it seems they give with one hand and take away with the other.....sigh....

Also, are you aware that you are allowed 12 'keep in touch' days whilst receiving MA to do any paperwork, or go into work for a day? This is useful, and I discovered you don't have to actually declare to them what days you do, unless you go over the 12 day allowance. The annoying thing is that they can't cope with you working for part of a day...it is all or nothing, so if you decide to use a KIP day, try to make full use of it if that makes sense. Though as I say it isn't strongly policed so it seems.

Molly

[ClareC]

I can't believe you get taxed on Maternity Allowance....... it's only ?130 pw in the first place!

Also, am I right in thinking there is a set start and end date of when you are eligible? ie if you stop working later into the pregnancy that doesnt give you and extra time after the birth?

I am going to need to research all this!

[alib]

I'm chewing through this site at the moment, it's quite good, but cruelly would perhaps be best digested with a stiff drink.

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/Expectingorbringingupchildren/DG_10018869

[The Nappy Lady]

I can't believe it either - am going to phone HMRC to double check, but it does seem to be the case. I wish they had just given me less in the first place!

I seem to recall you can go on leave any date you like with X weeks of the birth, you just have to let them know when, if you need to stop sooner than planned you can do this, you just phone and advise them that you have finished work...I stopped 2 weeks before baby was due, and it is then paid for 38 weeks or so as I recall....so I got paid from October until end of June.

The MA helpline people are wonderful by the way and very helpful, the number is 0845 608 8610, they will help with anything you're not sure of...

Molly

[Moos]

Presumably it wouldn't be taxed if your overall income was below the tax threshold?

[The Nappy Lady]

No - and also, I've just 'phoned HMRC and it sounds like an error in their system - I have to submit my return, then call them next week and they will correct the error so my tax bill will come down....yippee!!!!

Feel like I've just won the lottery!

Molly

[ClareC]

That's great thanks, I will give them a call :-)

I am thinking I may be entitld to nothing at all at the moment, according to my accountant I am a permanent employee albeit that I am employed by my own limited company which only has me as an employee. That puts me in the realms of SMP rather than MA which as it's me liable to pay me SMP leaves me with nothing!?!?!??!?

So glad I have paid my taxes and NIC for so many years and never claimed a penny for anything, it clearly pays off..... NOT!

hmmm need to research this further!

[ClareC]

The Nappy Lady Wrote:

-------------------------------------------------------

> No - and also, I've just 'phoned HMRC and it

> sounds like an error in their system - I have to

> submit my return, then call them next week and

> they will correct the error so my tax bill will

> come down....yippee!!!!

>

> Feel like I've just won the lottery!

>

Excellent news :-)

> Molly

[Moos]

The Nappy Lady Wrote:

-------------------------------------------------------

> Feel like I've just won the lottery!

>

> Molly

Congratulations, Molly, now don't go spending it on toys and tiny clothes - splash out on yourself! :)-D

[Jo]

What a confusing business - am just about to send off my form to claim MA. Can I just phone them with a date when I decide to finish?

Actually Molly, you've reminded me that I should probably do my 08/09 return now rather than wait until I have total baby brain :))

[Quaywegirl]

Clare, re SMP and Limited co's.

I have just finished 39 weeks of SMP and I am self employed via my own ltd co. Your company can claim the SMP payments back from HMRC and if your co only has you as an employee then HMRC will also pay a handling fee of about 4.5%. You can claim online so you shouldn't even need to pay your accountant to do this for you. You can do all of this via the HMRC website. It's well worth doing.

[ClareC]

Quaywegirl,

Thankyou so much for that :-)

The MA helpline knew nothing of this, and seemed to see as far as I wasn't registered as self employed and thefore MA didnt apply, they said SMP applied but didnt know the Gov pays this to the employer and therfore its just a different way of getting the money!! The SMP helpline for employers were more helpful although very set on the MatB1 certificate (seemed reluctant to give general advice until this issued oddly) - so much for lanning ahead ;-)

Thanks again

[The Nappy Lady]

Jo Wrote:

-------------------------------------------------------

> What a confusing business - am just about to send

> off my form to claim MA. Can I just phone them

> with a date when I decide to finish?

>

> Actually Molly, you've reminded me that I should

> probably do my 08/09 return now rather than wait

> until I have total baby brain :))

Def. do it as soon as you can. I managed to get my DH to have the baby for a couple of half days so I could get mine done and had been really dreading it. In the end it wasn't that bad, but what was tricky was that I haven't been filing as I go since baby arrived so had to spend quite a while sorting through all my paperwork etc. Thankfully I'm not high power enough to have that much though!

[millsa]

I've only just seen the whole conversation and wanted to scream: 'NO, DON'T WORRY MUMS, MA IS NOT TAXED!!!' after Molly's first post. I checked about three times with HMRC when I was doing my tax return and I even have an email somewhere confirming it is not taxed. And ClareC - how did you get ?130 a week? I was on ?117 :)

[lorraineliyanage]

Yep I just did my 08/09 tax credits form and MA is NOT included in your income for this either - phew!

[The Nappy Lady]

I just find it annoying that the on line tax return form includes it in your overall income - what if I hadn't checked with them? I wonder if they would have picked it up of their own accord?

Really naughty that they get stuff like this wrong.

M

[lorraineliyanage]

I doubt they would have picked it up, but they are good at backdating payments if an error has been made. The tax credits lot seem pretty helpful on the phone.

[ClareC]

millsa Wrote:

-------------------------------------------------------

> I've only just seen the whole conversation and

> wanted to scream: 'NO, DON'T WORRY MUMS, MA IS NOT

> TAXED!!!' after Molly's first post. I checked

> about three times with HMRC when I was doing my

> tax return and I even have an email somewhere

> confirming it is not taxed. And ClareC - how did

> you get ?130 a week? I was on ?117 :)

I havent had any...... when I called to ask what the situation was they were very cagey as I have not got a MatB1? Certificate yet - was only trying to do my research so can plan ahead!!! I dont know the exact sum, I think its nearer ?120 pw Seems I can't have that anyway, SMP for me apparantly.