Sole Trader Maternity Allowance

I am expecting a baby in October and will be temporarily ceasing my sole trader business.  I have been paying regular National Insurance Contributions in respect of my business, so will this entitle me to any benefits such as statutory maternity pay?

1st August 2010

In order to qualify for maternity leave and statutory maternity pay, a woman must be an employee, that is to say, she must work under a contract of employment.

Employees are, of course, entitled to sick leave, paid holiday leave and maternity leave as the employer is bound by legislation.  This does not apply to self-employed individuals and so any period of leave to cover the birth of your baby will be a matter is entirely up to you.

Although you will not be entitled to statutory maternity pay, you may be able to claim maternity allowance to fund the period that you will not be working, assuming you satisfy the criteria outlined in the claim form. The current rate is £124.88 or 90 per cent of your gross average weekly earnings (before tax), whichever is the smaller. You should contact your local TaxAssist accountant or local jobcentre plus office for further details, or alternatively visit the website

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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