Sole trader and MA question

[Bimbledorf]

Hi there, I just wondered if there were any sole traders out there who might know the answer to this question. I have trawled through all the relevant posts and been on the websites, but I can't find an answer to my possible problem.
I have been self employed for nearly 2 year, pay the Class 2 NI so shouldn't have a problem claiming MA and as baby is due on 1st April it's great as will get 9 months...(I know I need to get on and claim it asap!!)
My question is this: I haven't yet finished working and will be doing so for the next 2 weeks at least - in this time I will invoice for the work I will do in this time, BUT I never get paid till at least 30 days after this time, by which time baby will be here - I am assuming that as I won't be physically working then any money I take for the business won't mean my MA stops will it? I have a separate business account and bills to pay from it still so will need to continue to have money coming in.

ALSO I hope to sell my business, do I need to do this before baby comes as will the proceeds of this count as income - even though if I'm selling up I'm clearly not working?

I just really hope this baby doesn't come early!!

Thank you

[MrsBadger]

ooh I can't remember
we had a similar discussion a while ago about a sole trader employing someone while she was on mat leave - will try and track down thread.

[MrsBadger]

this was the thread but it wasn't as helpful as I'd hoped - might have some useful contact details on though.

[Bimbledorf]

Thanks MrsBadger. It's really frustrating that there isn't a clear answer out there - surely most Sole Traders will experience this as a problem. Maybe it's because it isn't one that they don't cover it?!

[JoshandJamie]

If I remember correctly, I asked for MA to start from when i stopped working, even though my clients still had 30 days to pay. I'm not an expert but am pretty sure that's what I did and I got the money from when i stopped working.

[julienetmum]

I don't know about MA but in terms of everyting else it is the date you invoice that is the one that is important not the date of payment received.

[MrsBadger]

You're right there julienet
Not sure about selling the business though as presumably you'd have to do some 'work' to get the sale through, even if it's only making phone calls etc, and doing any 'work' at all stops your eligibility for MA...
I guess you could make all the arrangements now for the business to be handed off in (eg) August, but you couldn't sign anything in Aug...

[CountTo10]

The invoice and work should be registered in your books in the time it has happened i.e. on date of issue. This is totally seperate from when cash changes hands. This is only taken into account where the work is on a cash only basis and not invoiced. Are you claiming MA as you are not allowed SMP?? As far as I know and this is not for certain, but proceeds received from selling your business are quoted on your tax return and effects how much tax you pay for that period. SMP is effected by NI paid not how much you make in a period i.e. everyone is entitled to it but I'm not sure how it effects MA - can I'm assume MA is means tested?

[Bimbledorf]

Thanks everyone. I'm really scared now as seen midwife today and she thinks baby will be here anytime in the next 2 weeks - I don't know how I'll get it all done. It's not like I want to be working right now it's just the way my job has gone! ARGH I really can't afford not to get the MA.
Countto10, I can't get SMP as I'm self employed but with Maternity Allowance you can get a standard £108 a week for 39 weeks (after 1st April) if you have paid class 2 NI contributions which I have, it's just so long as I'm not working ARGH I can't believe I'm wanting to stay pregnant for longer than I need to!!!

[Kentyville]

Hi there, just saw this thread and wondered if any of you knew off how early you can claim maternity allowance. I was a sole trader - recently changed to limited company on accountant's advice. But not working since xmas and due June 24th. Can't get work for such a short time - also have health issues that mean I'm having to go for more appointments than average.

Obviously I should call the DTI etc but if anyone knows off top of their heads then I'll know where to put that job on my very long to do list!

Thanks and hope you're all blooming.

[CantSlimWontSlim]

Hi Kentyville - can't remember the exact figures off the top of my head, but have a look in the NHS Pregnancy book that your midwife should have given to you, as there's a section on MA in there, which tells you how many weeks you need to have been working out of the last howevermany to be eligible to claim.

I suspect you can probably start mat leave around 11 weeks before the 'expected week of confinement', the same as SMP.

[Kentyville]

Thanks very much CantSlim, I've got the book and I'll check that out.