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Parental benefit and SGI when I am self-employed

Paternity benefit as new Swedish resident, moving from UK (original title)

Hello
I have recently moved to the UK with my Swedish wife. I am a self employed entrepreneur and a sole trader, hence do not have a monthly fixed salary but will declared income and pay taxes due at the end of the financial year. If we are to have a child soon how would the 240 day rule apply? Could you take details of my business income? How would that work? How would you calculate my approximate monthly income, to assess paternity pay?
Thanks

Comments

  • Hello Edward,

    The 240-days rule is fulfilled if you have been working and been entitled for sickness benefit for 240 days before the child’s birth. You are entitled for sickness benefit if you are covered by the Swedish social insurance through your work, and do qualify for a sickness benefit qualifying income (SGI). To qualify for an SGI, you need to have been working, or are expected to be working, for 6 months and have an income of minimum SEK 11 424 per year. SGI is the income that also parental benefit is based on.

    When you are self-employed, your SGI is based on the income that your business is expected to make. We look at the past year’s declared income for your business and compare the produced surplus with the income that you expect your business to make.

    This means that we take into consideration whether your business has grown steadily or if the income has decreased during the past years.
    If your income from your business has varied during the past years, and it is difficult to estimate future income, the SGI can be calculated as an average of the business’s income for the past years.

    If your business is new, meaning that it was registered and started operating later than 36 months ago, you can have the right to an SGI-calculation for new businesses (uppbyggnadsskede in Swedish). That means that if the business has not yet started to produce regular income, the SGI can be calculated based on how much someone who is employed, doing similar work as the business, would be earning.

    On our website you can find more general information about SGI and parental benefit when you are self-employed:
    Parental benefit and care of child (VAB) when you are self-employed (in Swedish)
    SGI-guide (in Swedish).

    If you have further questions please call us on 0771-179 000 and we will help you.

    Best regards,
    Ida
  • Many thanks Ida! This is very helpful!
    Edward

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