If you worked for at least for 26 weeks for a company and earning >£30/week over 13 weeks before baby born, you are eligible to claim Maternity Allowance.
Maternity Allowance
for eligible employees can be paid for up to 39 weeks, usually as follows:
the first 6 weeks: 90% of their average weekly earnings (AWE) before tax
the remaining 33 weeks: £139.58 or 90% of their AWE (whichever is lower)
Small company can claim back maternity allowance paid (103%).
Tax and National Insurance need to be deducted.
If you are a a Director and Shareholder of a small company, then
it is beneficial to withdraw up to 10,600 per tax year, otherwise you pay income tax, NI.
+ Dividends up to 31.785 that wont be taxed.
As alternative,
You could get a one-off payment of £500 to help towards the costs of having a child. This is known as a Sure Start Maternity Grant.
You usually qualify for the grant if:
you’re expecting your first child - or you’re expecting a multiple birth (eg twins) and have children already
you already get certain benefits
You must claim the grant within 11 weeks of the baby’s due date or within 3 months after the baby’s birth.
You don’t have to pay the grant back and it won’t affect your other benefits or tax credits.
Can you claim?
Usually, to qualify for a Sure Start Maternity Grant there must be no other children in your family and you must get one of these benefits:
Income Support
income-based Jobseeker’s Allowance
income-related Employment and Support Allowance
Pension Credit
Child Tax Credit at a rate higher than the family element
Working Tax Credit that includes a disability or severe disability element
Universal Credit
If you are eligible to claim, fill in SF100
Remember to fill in and send the form are from 11 weeks before the week your baby is due. The latest you can claim is 3 months after your baby is born.
Take the form to your local Jobcentre Plus or post it to:
Freepost RTGE-EUKR-TBSY
Wembley Benefit Centre
Mail Handling Site A
Wolverhampton
WV98 1HE