i want to start self employment whilst claiming smp from employer

[sunshine44]

hi
can anyone help i am currently employed and claiming smp (12 weeks left) i dont want to go back - not telling employer yet. but i want to start own business, is this ok - can i still claim smp and start up self employment??
hope someone can help!

I don't think you can as SMP is a benefit paid (via your employer) by the government.

You are only allowed to work whilst claiming SMP if you already had two jobs before your maternity leave started and you have returned to one but are still claiming from the other.

More info is is the IR booklet Payment & Time Off for Parents - An Employers Guide

I've been wondering the same, and I've come to the conclusion that you could start setting up, making contacts etc, without telling your employer or IR. You could be very devious and set up your company, start working but not actually trading, ie taking money, until your SMP is finished. Then inform the IR that you're starting a business on the day your SMP finishes.
If you officially start the company after your SMP has ended, and only take money after that date, any audit trails would come back squeaky clean.
But it is all very underhand, so you'd have to be very careful about your initial clientelle.
What type of business are you thinking of starting?

I took on new employment when still due smp from old employer and so had to inform them and payments were stopped.

But - when you set up a business, don't you get something like three months allowance before you start paying Tax and ni etc? (or did i dream that). If thats the case, it would seem fair - although i don't know if true - that you could still be entitled to smp.

You have 3 months in which to register your business otherwise you get a fine but the payments would be back-dated to when you started trading i.e. I'm a childminder and a website designer but the childminding started first so I informed them and although I got my certificate showing I was reg'd in the May, I didn't get my first paid for job until the July - that's when I had to start paying from (and if you have left it the 3 months, you just pay what you owe from then). Did that make sense???