Essential Guide to Self Employed Parental Leave, Paternity and Maternity Pay

Introduction to Self-Employment and Parental Rights

Being self-employed brings many freedoms but also unique challenges, especially when it comes to parental rights. Unlike employed mums or dads, self-employed parents do not always have the same access to statutory maternity pay, paternity pay, or parental leave. Understanding your employment status is crucial to know what you can claim and what support is available.

For example, self-employed fathers have no statutory entitlement to  paternity leave and paternity pay.¹ Self-employed mothers may be eligible for maternity allowance instead of statutory maternity pay.² Knowing these differences can help you plan better, for the arrival of your new baby and avoid surprises.

Understanding Employment Status

Your employment status, whether you're an employee, worker, or self-employed, directly affects your eligibility for parental leave and pay.

• Employed workers have an employment contract and depending on key criteria, may be entitled to statutory maternity pay,³ statutory paternity pay,⁴ and shared parental pay.⁵
• Self-employed people, including sole traders and those running their own limited company, have different rights.
• Self-employed workers must meet specific eligibility criteria to qualify for a maternity allowance. This includes having paid enough national insurance contributions and having worked for at least 26 weeks before the expected week of childbirth.³

To claim maternity allowance or statutory paternity pay, you may need to provide proof of your average earnings and employment status. This is especially important if you're a civil partner or in a same sex partner relationship, as eligibility rules apply equally.⁴

Maternity Allowance and Leave

If you're a self-employed mother who doesn't qualify for statutory maternity pay, you could apply to claim maternity allowance. This benefit provides financial support during your maternity leave.² This is especially important for working families managing expenses in the early days after the baby's birth.

Eligibility Criteria³

• You must have been registered as self-employed for at least 26 weeks in the 66 weeks before your baby is due.
• You need to have paid national insurance contributions or meet low-income thresholds to satisfy the qualifying conditions.
• You should apply through the government website ideally by the fifteenth week before your due date.

Self-employed people don't receive statutory maternity pay from an employer, so understanding your employment rights is crucial.

Leave Options

• Statutory maternity leave lasts up to 52 weeks, but self-employed people usually take unpaid leave. This is because they are not eligible for statutory maternity leave or pay.⁶
• You can also consider shared parental leave if your partner is eligible, however it is worth nothing that it is not currently possible for self-employed partners to take shared parental leave if the mother returns to work early and does not use all of her maternity leave, SMP or Maternity Allowance.⁶

For some families applying for the Sure Start Maternity Grant can provide additional financial assistance. This grant is available to those who meet certain criteria and can be a valuable resource in the few weeks following the arrival of your first child, a multiple birth or if your baby is born early. The grant provides a one-off payment of £500 to help with costs.⁷

Understanding your rights and options as a self-employed parent will help you navigate this important time with confidence and security.

Maternity Rights

Even as a self-employed person, you have maternity rights such as protection against unfair treatment and the right to return to work after your leave.⁶

Leave and Pay Entitlements

Paternity Leave and Pay

• Self-employed fathers are not entitled to paid paternity leave, and there is no equivalent Maternity Allowance for self-employed fathers and partners who want to take time off, so this would need to be planned for accordingly.⁶
• Statutory paternity pay is generally only available to employees working for the same employer for at least 26 weeks.⁴

Maternity Leave and Pay

• Maternity Allowance supports self-employed mothers during their leave.²
• Self-employed mothers who are claiming Maternity Allowance cannot take shared parental leave. Shared parental leave may be available for employed partners who meet the eligibility criteria.⁶

Planning Considerations

• Since leave and pay entitlements vary, self-employed parents should plan finances carefully.
• Consider applying for universal credit or other family benefits to help during this period.⁸

Antenatal Appointments

Attending antenatal appointments is vital for the health of both mother and baby.

• Employed parents usually have the right to time off for these appointments. However, it’s at the employer’s discretion whether this time off is paid or not.⁹
• However, self-employed people do not have a legal right to paid time off and may need to take unpaid time to attend appointments.
• You may want to keep proof of appointments in case you need to show evidence for any claims or support.

Family Benefits and Support

Several family benefits can assist self-employed parents financially.

Key Benefits

• Child benefit is available to most parents and can be claimed regardless of employment status.¹⁰
• You could claim child benefit through the government, but you must provide proof of your household income.¹⁰
• Universal credit and support allowance may also be available if your income is low.⁸

Eligibility and Planning

• Eligibility depends on factors like average earnings, household income, and whether you are a sole trader or run your own company.^10,11
• It is important to check the government website regularly for updates on other benefits.
• Planning ahead helps ensure you receive the maximum support available.

Summary

Navigating self-employed parental leave can be complex. Your employment status is key to understanding what you can claim. While self-employed mothers can access maternity allowance and maternity leave, self-employed fathers have no statutory paternity leave and usually no paternity pay. Planning, saving, and seeking advice from official sources like the government website can help you manage this important life event with confidence.

Sources

1. Paternity pay and leave: Overview - GOV.UK 
2. gov.uk/maternity-allowance 
3. gov.uk/maternity-allowance/eligibility 
4. gov.uk/paternity-pay-leave/eligibility 
5. gov.uk/shared-parental-leave-and-pay 
6. maternityaction.org.uk/maternity-and-parental-rights-for-self-employed-parents 
7. gov.uk/sure-start-maternity-grant 
8. gov.uk/universal-credit 
9. acas.org.uk/paternity-rights-leave-and-pay/pregnancy-appointments 
10. gov.uk/child-benefit 
11. gov.uk/universal-credit/eligibility