Self-employed, not entitled to maternity benefit. Entitled to anything else?

annamcmahon

I am due a baby in April. Just found out I'm not entitled to maternity benefit as I got JSB as a start your own business payment in 2010 and maternity benefit last year, 2011. Can't get PRSI credits for a period of time that you are receiving a PRSI credit based payment and need 52 weeks of credits as I'm self-employed.

I'm just wondering if I am entitled to any other payments as I am a sole trader so will have no income if I don't work. My husband is employed full time if that makes a difference.

Lugh Ildanach

I'm not a tax/prsi expert, but I would have thought that you should be paying Class S PRSI Contribution, and therefore that you would be eligible for Maternity Benefit.

Here's the welfare guidelines on self employment and PRSI http://www.welfare.ie/EN/OperationalGuidelines/Pages/prsi_selfemp.aspx and it doesn't say anything about excluding those who are in receipt of a PRSI credit based payment. The information that they give you when you go on the Back to Work Enterprise Allowance says that income from the new business is subject to tax/prsi.

I would double check this with the Department of Social Protection and Revenue.

If you have any children (or alternatively, when your child is born) your husband may be able to apply for Family Income Supplement if your family income is below the threshold for the family size. For more details see here http://www.welfare.ie/EN/Schemes/BirthChildrenAndFamilies/ChildRelatedPayments/Pages/fis.aspx

Unfortunately, as your husband is working full-time, you will not be eligible for Supplementary Welfare Allowance which is the only payment that may have covered any gap in Maternity Benefit.

sparkling sea

If you are self-employed you must be in insurable employment and have:

52 weeks PRSI contributions paid at Class S in the relevant tax year. For example, if you are going on maternity leave in 2012, the relevant tax year is 2010.
Or
52 weeks PRSI contributions paid at Class S in the tax year immediately before the relevant tax year. For example, if you are going on maternity leave in 2012, the tax year immediately before the relevant tax year is 2009.
Or
52 weeks PRSI contributions paid at Class S in the tax year immediately following the relevant tax year. For example, if you are going on maternity leave in 2012, the tax year immediately following the relevant tax year is 2011

PRSI Class S contributions for a particular year are not awarded until you have paid tax due for that year. Your income tax and PRSI liabilities, for any year you are self employed, must be paid to qualify for Maternity Benefit.

You can have credited contributions when you are on a PRSI credit payment but you won't have paid contributions - which is what you need for the Class S payment

however

If you were an employee in the past, you might still qualify using these PRSI contributions. You would need; At least 39 weeks PRSI paid since first starting work and at least 39 weeks PRSI paid or credited in the relevant tax year or in the tax year immediately following the relevant tax year. For example, if you are going on maternity leave in 2012, the relevant tax year is 2010 and the year following that is 2011.
If you have these you need to appeal immediately.

annamcmahon

Thanks for the replies.

"You can have credited contributions when you are on a PRSI credit payment but you won't have paid contributions - which is what you need for the Class S payment"
I have to make voluntary contributions for 2010, because I earned less than €5000, and when I rang that section of social protection they said there was no point since I couldn't get credits for the time I was getting the JSB payments.

Found this in the voluntary contribution leaflet. "Voluntary contributions cover for long-term benefits, such as pensions.
However, the voluntary contributions do not cover shortterm benefits such as those for illness, unemployment, maternity, occupational injuries and dental and optical treatment."

I've been self-employed since Oct 09 so don't have other credits. I was able to get it last year based on the credits I had from being a PAYE worker in 09.

Must check the FIS information so.

sparkling sea

annamcmahon wrote: »

Thanks for the replies.

"You can have credited contributions when you are on a PRSI credit payment but you won't have paid contributions - which is what you need for the Class S payment"
I have to make voluntary contributions for 2010, because I earned less than €5000, and when I rang that section of social protection they said there was no point since I couldn't get credits for the time I was getting the JSB payments.

Found this in the voluntary contribution leaflet. "Voluntary contributions cover for long-term benefits, such as pensions.
However, the voluntary contributions do not cover shortterm benefits such as those for illness, unemployment, maternity, occupational injuries and dental and optical treatment."

I've been self-employed since Oct 09 so don't have other credits. I was able to get it last year based on the credits I had from being a PAYE worker in 09.

Must check the FIS information so.

I am not sure how many children you have - Net family income for 1 child is 506. for 2 children its 602 - you receive 60% of the difference between your net income and the income limit that applies to your family. FIS disregards tax as well as the normal disregards..

FIS is not counted as income for the medical card or the back to school clothing and footwear scheme either

annamcmahon

This will be my second child. I checked the FIS link on the previous reply and we are probably just over the income limit. I will have to do a proper calculation.