25 February 2025
Self-employed maternity pay: key information
7 minutes
Are you soon to become a parent or expecting another child while working for yourself? If so, you might be wondering how self-employed maternity pay works. Maternity Allowance is the best option for self-employed mothers, but there are alternatives if you’re not eligible.
In this guide, we’ll cover the key info to know about self-employed maternity pay and answer some frequently asked questions.
Do I get maternity pay if self-employed?
Unfortunately, self-employed women aren’t eligible for Statutory Maternity Pay (SMP). This is because SMP is paid by employers to their employees while they’re on maternity leave. As the self-employed don’t have employers, they aren’t able to receive statutory pay.
Thankfully, there are other options available — not just for self-employed mothers, but also for employees who aren’t eligible for SMP and for the unemployed.
Read more: Self-employed insurance
Can you claim maternity pay from the government?
If you’re not eligible for SMP, your best option is to claim Maternity Allowance. This is paid for by the government rather than employers.
Maternity Allowance for the self-employed
Maternity Allowance is a regular payment to support mothers while they’re not working due to having a baby. Its key features are as follows:
- Payment schedule: you can choose to be paid every two or four weeks, whichever you prefer.
- Start date: you can also choose when your Maternity Allowance starts. The earliest you can start receiving payments is 11 weeks before your baby’s due date. The latest you can start receiving them is the day after your baby is born.
- Duration: you can get Maternity Allowance for up to 39 weeks.
Eligibility for Maternity Allowance
If you’re self-employed, there are a few criteria you’ll need to meet to be eligible for Maternity Allowance. (Note that there are different criteria for the employed and unemployed.)
These criteria apply to the 66 weeks before your due date. This is known as the “test period” — if you meet the criteria during this period, you’ll be eligible. You can use the government’s handy calculator to work out the exact dates of your test period.
- Self-employment: you must have been self-employed for 26 weeks or more during the test period. These weeks don’t have to be consecutive. If you’re not already registered with HM Revenue and Customs (HMRC), do this as soon as possible, else it could impact your claim.
- National Insurance contributions: you must have made Class 2 National Insurance contributions for at least 13 weeks during your test period. Again, these needn’t be consecutive. If you haven’t, you’ll only be eligible for lower rates of Maternity Allowance, unless you make up the difference. More on this below.
Once you start receiving Maternity Allowance, you’ll enter your Maternity Allowance Period. To remain eligible during this period, you need to make sure you work no more than ten days in total. These are called “keeping-in-touch” (KIT) days.
If you do any work on a given day, no matter how small, it’ll count as a full KIT day. So, try to get the most out of your KIT days by doing a full day’s worth if you can. Any days you work above this ten-day allowance will be deducted from your payments.
How to apply for Maternity Allowance
You can apply for Maternity Allowance once you enter your 26th week of pregnancy. You can also apply retrospectively, but no later than three months after the birth of your baby.
To apply for Maternity Allowance, you’ll need to submit an MA1 claim form by post. If you’re unable to print the form yourself, you can request a printed form, which you can then complete and send back.
You’ll need to provide various bits of information, including:
- Your personal details
- Your baby’s due date
- Your self-employed work during your test period
- Any benefits you’re receiving
- Your payment details.
You’ll also need to provide proof of your baby’s due date. If your baby hasn’t been born yet, this could be an official letter from your GP or midwife, or Part A of your MAT B1 certificate. If your baby has been born, this can be an official letter, Part B of your MAT B1 certificate, or your baby’s birth certificate.
You should receive a response to your application within 20 working days.
How much is self-employed maternity pay?
How much you’ll receive will depend on how many National Insurance contributions you’ve made. If you’ve made sufficient contributions (i.e. 13 weeks’ worth), you’ll receive the full rate, which is £184.03 a week.
If you haven’t made enough National Insurance contributions, HMRC will let you know. You can choose to pay voluntary contributions to make up the gap, which will then mean you’re eligible for full Maternity Allowance. Note that it can take a few weeks for your maternity payments to be backdated. Class 2 contributions cost £3.45, so it’ll cost you a maximum of £44.85 for up to 13 weeks.
If you decide not to fill the gap, your weekly payments will be based on how many contributions you have made. The lowest reduced rate is £27 a week. The more contributions you’ve made, the higher your payments, up to the full amount of £184.03.
What happens now that National Insurance contributions have changed?
From April 2024, self-employed people are no longer required to pay Class 2 National Insurance contributions. If your annual profits total £6,725 or above, you’ll be treated as if you have made Class 2 contributions. If your profits are less than this threshold, you can decide to make voluntary contributions instead so that your record stays intact. Or you can choose not to pay at all.
If you’re applying for Maternity Allowance and you’re not sure about your profits, it might be a good idea to pay 13 voluntary contributions so you’re definitely entitled to the full rate. This is because self-employment profits aren’t confirmed until after the tax year ends. If it turns out you’ve made enough profit and your contributions were already paid, you can then claim these voluntary payments back as part of your tax return.
Is maternity pay taxable?
SMP is taxable, but Maternity Allowance payments are tax-free. When you next come to complete your self-assessment tax return, you don’t need to factor it in as part of your income.
What are the other options besides Maternity Allowance
You might not be eligible for Maternity Allowance, for example if you haven’t been self-employed for 26 weeks. If so, there are a couple of different options to pursue.
Employment and Support Allowance
Employment and Support Allowance (ESA) usually applies to those whose ability to work is impacted by an illness, injury, or disability. But if you’re not eligible for Maternity Allowance, the Department for Work and Pensions (DWP) automatically has to consider you for ESA instead.
To receive ESA, you’ll need to have made enough National Insurance contributions in the previous two tax years. You also need to have “limited capability for work”. This means you’ll only be eligible for ESA for six weeks before your due date and two weeks after the birth. You’ll be placed in the work-related activity group, which means you’ll receive up to £90.50 a week.
Universal Credit
Another option is to apply for Universal Credit (UC), which is a benefit payment available to those on low incomes. You’ll need to have less than £16,000 in savings to be eligible.
UC payments are usually calculated using estimated earnings based on the minimum wage, called a “minimum income floor”. But if you’re pregnant, if you’ve given birth in the past 15 weeks, or if you’re the main carer for a child under 3, this minimum floor doesn’t apply. Your payments will reflect what you’re actually earning, if anything.
Find out more about ESA and UC for the self-employed [link to self employed sick pay article].
Company directors
If you’re a company director employed by your own company, you’ll be entitled to SMP like any other employee. You’ll be eligible for SMP if you’ve been employed by the company for 26 weeks or more by the time you’re 15 weeks out from your due date. You must also earn more than £123 a week on average.
SMP lasts for 39 weeks. For the first six, you’ll receive 90% of your usual average pay. After that, you’ll continue receiving this amount or £184.03 a week — whichever is lower. It’ll be paid at the same frequency as your normal paychecks, with tax and National Insurance deducted through PAYE.
Read more: What is PAYE? All the info you need
Frequently asked questions
What happens if my baby is born early?
If your baby arrives early, you’ll start receiving Maternity Allowance from the day after they’re born. Be sure to inform DWP about the change. Your test period will still be calculated from the due date, but note that you’ll also still need to meet the eligibility criteria.
What happens if I’m both employed and self-employed?
You can’t receive both SMP and Maternity Allowance at the same time. So, if you’re eligible for SMP with your employer, that’s how you’ll receive maternity pay. If you’re not eligible for SMP, you can instead apply for Maternity Allowance.
Do small businesses get help with maternity pay?
Yes, in fact all employers can reclaim some or all of the SMP they pay out. Larger employers can usually get back 92% of payments. Small businesses that meet the criteria for Small Employers’ Relief can claim back 103% of payments.
Can a self-employed person claim paternity pay?
Unfortunately, there’s no equivalent to Maternity Allowance for self-employed fathers. Employed dads are eligible for Statutory Paternity Pay (SPP) and paternity leave, but there are simply no provisions for the self-employed here. Some groups are campaigning for the rules around this to change.
If you’d like a family one day or are expecting, consider putting aside a bit of money on a regular basis to create your own paternity fund. This means you’ll have some savings to fall back on if you take time off work after your child is born. Also check if you’re eligible for financial support, such as Child Benefit, Universal Credit, Child Tax Credit, or a Sure Start Maternity Grant.
Quickfire summary
If you’re self-employed you’re not eligible for SMP, so your best bet is Maternity Allowance. There are various eligibility criteria you’ll need to meet to receive payments, especially the full rate. If you’re not eligible for Maternity Allowance, ESA and UC are other options to consider.
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