Other paid employment during maternity leave

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Would welcome legal advice on working during maternity leave please. I am currently on six months' ML from my employer - large multinational organisation with European HQ. Maternity rights are the bare minimum - six weeks' full pay then SMP, so finances are starting to become tight. I am the main earner as DH is self-employed in an industry affected by the weather and economy. I have been offered part-time work on a self-employed basis which will be a great help.

Please can anyone advise:
a) Am I obliged to inform my current employer?
b) how do I arrange paying tax on the new work?
c) of any other legal (or ethical) aspects I need to consider?

Many thanks for your help!

You can only work up to ten days (KIT) before you forfeit your SMP for that week. Payment to be decided between you and your enployer. But I'm not sure if that is 10 days total or 10 days per employer.

If your day rate is more than a week's SMP obviously that would still be worth doing but you would definitely have to declare it. I'd give HMRC a call, if things are going to be tight the last thing you need is to be socked with an unexpected tax bill!

Don't forget that if you are the main earner and stop earning so much whilst on leave it might take you under the threshold for tax credits etc - worth looking into.

"NOTE: You can only use Keeping in Touch days with the employer paying you SMP. You cannot use KIT days for any work you do for any employer other than the employer who is paying you SMP. If, after your baby is born, you do any work for an employer who did not employ you in the qualifying week, your SMP will stop" From here.

So, according to that, you can't do this self-employed work while recieving SMP from your current employer.

Thank you both very much - I did have doubts about the legalities. I'll speak to the HMRC and confirm the guidance. The job I've been offered is totally flexible (ie can choose to do one hour or 40 hours' work per week depending on my availability) so it would be difficult to predict whether it's worth jeopardising my SMP and appearing disloyal to my current employer.

Thanks again for the advice.

You can only work for another employer or be self employed whilst on maternity leave without losing your SMP if you had both jobs before your maternity loave started.

I don't have the exact wording in the Emplyer Helpbook from HMRC on me at the moment, only the Paternity Leave one but I can look it up if you like

I would think that even if it is worth it financially (ie you forgo your SMP because you earn more from self-employed work) that your current employer may take a very dim view of it, and it may have contractual implications. I would look into it v carefully.

I don't know whether you could do work and not invoice for it until the end of the "project" or run of work, thereby not being paid during your SMP period? I know you owuldn't have the cash now, but you would effectively be saving iyswim?

NOOOOOOOOOOOOOOOO! - or perhaps YESSSSSSSSSSSSSSSSSSSS!

OP I hope you are still reading because SMP is not affected by earnings from self employment.

Here it is from the horse's mouth:

"If you do any work in a self-employed capacity during your MPP, then such work will not affect your SMP."

To answer your original questions:
a) that depends on your contract with your current employer, I can't help you there
b) you need to register as self employed
c) is this true self employment, or is it really casual employment that should go through PAYE?

Your company will almost certainly have rules on taking other employment while you are employed by them. Check your contract.

Is that a recent change in the ruling Mranchovy as just a few years ago that was not the case.

The [http://webarchive.nationalarchives.gov.uk/20091009181011/dwp.gov.uk/publications/specialist-guides/technical-guidance/ni17a-a-guide-to-maternity/statutory-maternity-pay-smp/working-in-your-maternity-pay/ oldest version of NI17A on the national archive]] is October 2009 and it shows the current text as quoted.

Oops... the <a class="break-all" href="http://webarchive.nationalarchives.gov.uk/20091009181011/dwp.gov.uk/publications/specialist-guides/technical-guidance/ni17a-a-guide-to-maternity/statutory-maternity-pay-smp/working-in-your-maternity-pay/" rel="nofollow" target="_blank">oldest version of NI17A on the national archive is October 2009 and it shows the current text as quoted.

hmmm, looking at what appears to be the original legislation from 1986, it would appear that only work for an employer should cause SMP to stop, so I don't think this is a recent change. Mind you it is not easy to follow that drafting :(

Definitely still reading - thanks all. I will need to be self-employed to take on the new work so am planning to register with an agency like Brookson's. Will check my contract and speak to my current manager to advise what I'm considering. Thanks again - keeping this brief as typing one handed whilst feeding!

Tread carefully because you need to be very precise about the difference between employment and self-employment. In particular, a limited company or umbrella company freelance solution is employment (you are employed by your limited company or umbrella company rather than the organisation you are working for). The only solution that doesn't threaten your SMP is self-employment, and the company you want to work for may not be happy to engage you on that basis.

There is a freelancer's topic here on Mumsnet.