Self Employed and Maternity Allowance – Be Aware

12 August 2016 08:12

The amount of Maternity Allowance that a self employed person is entitled to is dependent on the amount of Class 2 National Insurance that has been paid.

Since July 2015, Class 2 National Insurance is payable as part of your self assessment liability, with the first payment due in January 2017, and here lies the potential problem.

When making a claim for Maternity Allowance, it is likely that HMRC’s records show that you last paid Class 2 NIC in July 2015. So your Maternity Allowance claim may well be reduced as a result of this (i.e. their records suggests not enough NIC has been paid!).

It is therefore essential that any Maternity Allowance claim is checked carefully, and if applicable, HMRC should be contacted to request a demand for Class 2 NIC to date. By making the payment and bringing your Class 2 NIC up to date, it should result in your Maternity Allowance increasing.

Our biggest concern is that when making a claim, people simply may not be aware that the entitlement has been reduced, and furthermore that action can be taken in order to ensure the maximum entitlement is obtained.

Want a bit of help making sure you get all the Maternity Allowance you should? Get in touch or give us a call on 01228586790.

Being your own boss is tough. If you're struggling to find the time for your accounts, why not get help? It doesn't matter if you're a sole trader or in a partnership.

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