I have been delaying applying for my Maternity Leave because I have had my first year of business as a self employed person. My Accountant has finally done my numbers and confirmed that they are correct on my forms.
It has been a bit confusing on how it all works.
I found Citizens Advice Bureau really helpful and they have an online chat option as well which is great since I am more a tech person then a calling/talking person.
Also note that you have to POST the forms, that's right POST them, so add like 2-3 for form processing, omg!!!
Qualifying for paid parental leave:
Casual and seasonal employees
employees with more than one employer, and
people who have recently changed jobs.
Applying for paid parental leave:
You can apply for PPL:
before your baby's birth
after your baby has been born (up until the first birthday)
when the child has come into your care or at any time up until the child has been in your care for 12 months.
You must apply before you return to work for any employer or self-employment (whichever is earlier). Your start date can't be later than your baby's date of birth or expected due date, or the date the child arrives in your care.
If you apply after this date, or after the 18 weeks have finished, we'll back-pay your entitlement as a lump sum.
You'll need to complete a Paid parental leave (PPL) application (IR880) form and include:
a declaration from your employer, chartered accountant or tax advisor, or
a statutory declaration witnessed by a Justice of the Peace (or other person authorised to witness statutory declarations).
You'll also need to provide evidence from your lead maternity carer of your expected due date, or evidence that you are the primary carer of a child under six.
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Paid parental leave payments
We'll pay PPL payments directly into your bank account each fortnight. The payments will be treated as income, just like your normal salary and wages or self-employed income. PPL payments have tax and student loan deductions taken out (at the rate that applies to you).
Once we've received and processed your application we'll send your payment advice letter with:
your weekly entitlement amount (note that while this entitlement is weekly it's paid fortnightly)
the amount of your regular fortnightly payment (the first and last payments may be different to your regular fortnightly amounts depending on your PPL start date)
the dates when all your payments will be received.
If you receive PPL payments and another source of income at the same time
If you're also receiving another source of income (such as annual leave payments or an employer top-up) you'll need to use a secondary tax code for the lower payment amount. This will help you avoid a tax bill at the end of the year.
Find out more about secondary tax codes - you can also use the tax code decision tree on this page to choose the right tax code for your situation.
If you're an employee
PPL payments equal your normal pay up to a current maximum of
$538.55 a week before tax.
You'll receive the average of your highest 26 of the last 52 weeks of earnings up to the date the child arrives in your care.
If you're self-employed
PPL payments equal your average weekly earnings up to a current maximum of
$538.55 a week before tax.
The minimum payment is $157.50 each week before tax.
If you earn less than this, or make a loss, this is what you'll receive.
It's equivalent to 10 hours each week at the current minimum wage rate.
How long you can receive payments for?
You can receive PPL payments for a maximum of
18 weeks if your baby is expected, born or a child under the age of 6 comes into your care on or after 1 April 2016.
If your baby is due or is born on or after 1 June 2017
You may use paid leave entitlements (eg annual leave) before starting your paid parental leave. In this situation you can start your paid parental leave from the day after your paid leave ends, even if it is later than the child’s expected delivery date or date of birth, or the date they come into your care.
If you won’t be using paid leave entitlements, your start date cannot be later than your expected delivery date or child’s date of birth, or the day you become the primary carer of the child.
If your baby is due on or after 1 April 2016 and is born prematurely
If your baby is due on or after 1 April 2016 and is born prematurely (before the 37th week of pregnancy) you'll qualify for additional baby payments. These payments cover the time between your baby's date of birth up to the end of the 36th week. Your regular PPL payments will start after this.
You can also claim these payments if you're not the birth mother but you have primary care of the baby during the preterm period.
From 1 June 2017, if your baby is born prematurely and you return to work after you start getting a preterm baby payment or parental leave payment, you can still get your parental leave payments when you go back on parental leave, as long as it’s no later than the original expected date of birth, had the baby not been born prematurely.
Transferring your paid parental leave to your spouse or partner
You can transfer your PPL to your spouse or partner, as long as they also qualify for PPL from their employer (s) or self-employment.
You can elect which one of you will receive PPL if you and your spouse or partner:
are becoming joint primary carers of a child under six, and
you both qualify for PPL from your employer(s) or self-employment.
You can still transfer part of your entitlement once you've elected which one of you will claim PPL.
You'll need to complete a Paid parental leave (PPL) transfer (IR881) form.
