A Guide to Self-Employed Maternity Allowance

Posted: 11th March 2023 | Last updated: 20th April 2023
Category: Self-Employment Tax
If you're self-employed and wondering whether you're eligible for Maternity Allowance while taking time off for your baby, you're in the right place! This guide explains Maternity Allowance for the self-employed, how to apply, and what to expect while you step away from your business.

Table of Contents

1. What is Self-Employed Maternity Allowance?

2. Who Qualifies for Self-Employed Maternity Pay?

3. How to Apply for Self-Employed Maternity Allowance
   3.1. What is a MA1 Form?
   3.2. Is There a Time Limit to Make Your Claim?

4. When Do Your Maternity Payments Start?

5. Maternity Allowance When You’re Involved in Your Spouse’s Self-Employed Business

6. Is Maternity Allowance Taxable?

7. Does Maternity Allowance Affect Other State Benefits?

8. Can Maternity Allowance Be Backdated?

9. Can I Get Statutory Maternity Pay and Maternity Allowance?

10. Can You Claim Maternity Allowance if You Haven’t Registered as Self-Employed?

11. Where to Get More Help

Disclaimer
While I am an accountant, this is general guidance and should not be taken as specific advice for your situation. If in doubt, consult a qualified professional as errors can result in penalties.

1. What is Self-Employed Maternity Allowance?
Maternity Allowance is a benefit for mums-to-be who aren't eligible for statutory maternity leave and pay. Unlike employed individuals whose employers handle maternity pay, self-employed individuals must apply for Maternity Allowance themselves.

2. Who Qualifies for Self-Employed Maternity Pay?

To qualify, you must:

• Be registered as self-employed.

• Be helping in your spouse's or civil partner's self-employed business.

• Be an agency worker without employment rights.

You’ll also need to:

• Be registered as self-employed for at least 26 weeks in the 66 weeks before your baby’s due date.

• Earn at least £30 per week for 13 weeks within that period.

• Intend to stop work to have your baby.

• Have paid at least 13 weeks of Class 2 NICs during that period.
   

3. How Much is Self-Employed Maternity Allowance?
The full rate of Maternity Allowance is paid for 39 weeks at the lower of:

• £151.97 per week, or

• 90% of your average gross weekly earnings.

Payments start 11 weeks before your baby is due, and you can’t claim until your 26th week of pregnancy. Payments are made every 2 to 4 weeks.
3.1. Reduced Rate Maternity Allowance
You may receive a reduced rate (£30/week for 39 or 14 weeks) if:

• You've been self-employed for less than 26 weeks.

• You assist in your partner's business but haven’t paid sufficient Class 2 NICs.

4. How to Apply for Self-Employed Maternity Allowance
You can claim from the start of the 14th week before your baby’s due date using the MA1 form.
4.1. What is a MA1 Form?
The MA1 form can be completed online or on paper and mailed to HMRC. It requires details such as:

• National Insurance number.

• Baby’s due date.

• Other benefits you’re receiving.

• Date of self-employment registration.

• UTR number.

• Spouse’s business details if applicable.

You’ll typically receive a decision within 24 days, and payments will begin on the Sunday of the 11th week before your baby is due.
4.2. Is There a Time Limit to Make Your Claim?
You must claim within 3 months of the start of your Maternity Allowance period. Late claims result in loss of benefits.

5. Maternity Allowance When Involved in Your Spouse’s Self-Employed Business
If you help in your partner’s business, you might qualify for the reduced rate of £27/week for 14 weeks. You must meet certain criteria and provide supporting documentation, including:

• Marriage/Civil Partnership Certificate.

• Proof of your baby’s due date (MATB1 Certificate).

• Baby’s birth certificate (if applying after birth).

6. Is Maternity Allowance Taxable?
No, Maternity Allowance is not a taxable benefit, so it doesn’t need to be included in your tax return.

7. Does Maternity Allowance Affect Other State Benefits?
Maternity Allowance may impact other benefits due to the benefits cap, including:

• Council Tax Reduction.

• Housing Benefit.

• Employment and Support Allowance.

• Universal Credit, among others.

8. Can Maternity Allowance Be Backdated?
Yes, it can be backdated up to 3 months. Any longer and you will lose out on payments.

9. Can I Get Statutory Maternity Pay and Maternity Allowance?
No, you can’t claim both. If you’re eligible for Statutory Maternity Pay (SMP), you must claim that instead. Maternity Allowance is available if you do not qualify for SMP.

10. Can You Claim Maternity Allowance if You Haven’t Registered as Self-Employed?
To qualify for Maternity Allowance, you must have paid Class 2 NICs. If you’re not registered as self-employed, it’s essential to do so and consider paying voluntary NICs to ensure eligibility for state benefits.

11. Where to Get More Help
For further assistance, contact HMRC Wrexham:

Address:
Wrexham Maternity Allowance
Mail Handling Site A
Wolverhampton WV98 1SU
Phone: 0800 169 0283
Related:

• Child Benefit Explained

• Tax-Free Childcare for the Self-Employed