Statutory Maternity Allowance For Soletraders

I am expecting a baby in August, and will temporarily be ceasing my sole trader business. Am I entitled to any benefits such as maternity pay from the HMRC?

1st June 2009

To qualify for maternity leave and statutory maternity pay, a woman must be an employee; she must work under a contract of employment. In the same way that individuals who are self-employed are not bound by statutory legislation on, for example, sick leave or holidays, any period of leave to cover the birth of a baby will be a matter of personal decision.

However, as a self employed person you may be able to claim maternity allowance (as opposed to the statutory maternity pay due to employees) to fund the period that you will not be working, assuming you satisfy the criteria outlined in the claim form.

Maternity allowance can be paid for up to 39 weeks. To qualify, you must have been employed or self-employed in at least 26 of the 66 weeks before the week your baby is expected and have average weekly earnings of at least 30.

You should contact your local TaxAssist Accountant or local jobcentre plus office for further details, or alternatively visit the website www.dwp.gov.uk.

By Jo Nockels

Disclaimer: The information provided is based on current guidance (at date of publication) from HMRC and may be subject to change. Any advice shared here is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this information, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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