Is anyone self employed and claiming Maternity Allowance?

I was running my own full time business until the end of last year when I gave it up due to the baby.   I still run a small online shop but it's more of a 'hobby' that anything else and brings in not very much at all.   I still pay N.I contributions and have to class myself as self employed (or at least I think I do?).   Because I used to run the online shop in conjunction with the other full time business, it's never had to stand on it's own before.   I'm just wondering if it will be more hinder to me in terms of the maternity allowance I get and those family tax credit things you get/child allowance when the baby is born?   I'm not sure how they are going to work out what I'm entitled to when I don't know how much the profit/loss will be until next year if that makes sense?   I'm basically wondering if I should give it up.   I don't know if anyone can help me at all, I've looked on the Gov Direct site etc but thats not much help.

Yes, me and I've just started it for the second time. When it comes to doing tax returns this is when they work out if you've been paid too much and you basically pay it back as tax the following year from what I remember. As long as you're paying NI contributions for the time being you are classed as earning enough to get MA.

Yes, as long as ypu pay NI you'll get MA and the MA dosen't count as earnings for getting tax credits.

Thank you all I wish I'd have asked ages ago I've been whittling about it for a while!  

I'm not even sure how tax credits work, I'm presuming they go on how much we earn?   

With the MA, will I get full whack then if they don't know how much I'm going to have earnt this year?  As I say its going to be peanuts, well under £5K and I would guess even under £2K?   What is full whack MA?

the maximum MA you can get is about £123 per week for 9 months

for tax credit, you have to tell them you estimated earning  if you dont have the accounts for the year and the following year they will adjust the amount, either you give them money back or they will give you, if you call them they are very helpfull

Thank you.  

For 9 months!!!   I was told I can only claim now that I'm 29 weeks?   Will I get £123 a week for the next 9 months then?  Blimey that'd be a real help, I'm not entitled to anything at all at the moment.

I have the accounts for the past few years but they were when I was running the full time business and it included the hobby bit too.  I've never done them separately you see.

So long as you are paying the full payment of NI then you are entitled to the full amount of MA.  You also do not need to include this on your tax return.

Regarding tax credits it will be based on your 'profit' and also your H's earnings.

as an example.

Both H and I are self employed and they base it on an estimate of profits which is what you tell them or based around last years accounts.  They then ask for the actual amount as per tax return and will adjust the tax credits around that.  Again as an example my earnings this year will be about 2000 because I only worked from April to May and then again from March to April.  I think you have to work at least 16 hours per week.  My H estimated profits are 18000 therefore they work them out on income of 20,000. We get quite a lot each month and more in the babies first year.

I really worried about this in the first year and goodness knows how but I put it all away until they sent the letter after our tax returns saying that we were entitled to it all.  Once I got this letter then it meant we could keep the money so I spent that money the following year and then put away the current years money - I have been doing the same each year.  H business is very up and down so we might have a good year followed by a bad year so we never know if the calculation of tax credits is right and I would find it very difficult to pay it back if need be.

Hope this all helps - but with MA the key is to pay your NI - incidently this payment stops automatically when you start claiming MA.  You are allowed to have 'Keeping in Touch days' - I think it is 10 in all but you have to inform the MA people about it.  You are allowed to earn money on these days. So you could quite possibly keep your hobby business going over these 10 days?

HappyGirl:

So long as you are paying the full payment of NI then you are entitled to the full amount of MA.  You also do not need to include this on your tax return.

 

Regarding tax credits it will be based on your 'profit' and also your H's earnings.

 

as an example.

 

Both H and I are self employed and they base it on an estimate of profits which is what you tell them or based around last years accounts.  They then ask for the actual amount as per tax return and will adjust the tax credits around that.  Again as an example my earnings this year will be about 2000 because I only worked from April to May and then again from March to April.  I think you have to work at least 16 hours per week.  My H estimated profits are 18000 therefore they work them out on income of 20,000. We get quite a lot each month and more in the babies first year.

 

I really worried about this in the first year and goodness knows how but I put it all away until they sent the letter after our tax returns saying that we were entitled to it all.  Once I got this letter then it meant we could keep the money so I spent that money the following year and then put away the current years money - I have been doing the same each year.  H business is very up and down so we might have a good year followed by a bad year so we never know if the calculation of tax credits is right and I would find it very difficult to pay it back if need be.

 

Hope this all helps - but with MA the key is to pay your NI - incidently this payment stops automatically when you start claiming MA.  You are allowed to have 'Keeping in Touch days' - I think it is 10 in all but you have to inform the MA people about it.  You are allowed to earn money on these days. So you could quite possibly keep your hobby business going over these 10 days?

 

Awww no I wish I knew that last year as I paid tax when I didnt earn enough because it came under the benefit section.

I used the 10 KIT days last year, you just have to tell them which days you work if you use them.

Thanks again all.   Thanks HappyGirl.  I've never done the accounts for just this online shop as they've always been emalgamated into the full time business so not sure what the estimate is.   Seeing as I only gave that up the full time business in Dec, there will be April 2009 - Dec 2009 worth of those accounts too for this year at least.

The NI is I think around £35 every few months, maybe per quarter even?   Which payment stops when I start claiming MA - my NI payment?   Sorry this is going to sound really thick now but do you mean when I start claiming MA I am supposed to shut the website down totally?  I can't keep it running whilst I get MA?   So I'd have to close it down for the next 9 months?  Apart from 10 days of that time when I am allowed to earn money from it?

Gosh I find it all so confusing!  

I would not have thought you would have to close your website down while on MA. I'm claiming MA at the moment but am regarding the 10 days as a guideline as I'm working now again very part time for 2-3 hours a week. I assume, as long as the money I bring in is equiv of 10 days work, it's not 10 actual days as such as what I do does not work like that.

Ahh I see what you mean.  Yes it ebbs and flows.  I didn't have an order for a week then had 2 yesterday which took me all of about 10 mins to process.