Claiming Maternity Allowance

I am expecting a baby in September, and will temporarily cease my hair stylist sole trader business. I need to know if I am entitled to any benefits such as statutory maternity pay.  Can I claim for this even though I am self employed?

1st July 2008

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. 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. Maternity Allowance currently pays a standard weekly rate of 117.18 or 90 per cent of your average gross weekly earnings (before tax), whichever is the smaller. It is paid for a maximum of 39 weeks.

Visit website for more information, or contact your accountant or local jobcentre plus office for further details.

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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