How do your keep your business afloat while on maternity?

[tigerbear]

For those of you who have your own businesses and are sole traders, how do you keep your business running while on maternity leave and getting maternity allowance?

My work is quite sporadic, so I could have a couple of projects one month and nothing the next, so obviously have to jump at work as and when it comes up.

My dilemma is that I'm due to have DD1 in May and will be applying for maternity allowance. The question is, am I allowed to do any work within the official mat leave period? I've been offered a project for December and would love to accept it, but does that mean my MA would be stopped?

Any advice would be much appreciated, as I can't seem to find official advice on any of the government websites about this.

I'm popping out in a minute, so will reply to any posts later....

you don't stop.
you just change the dates on your invoices to make it look that way.
I did a tax return when DS was 23 hours old
HMRC deadlines did not move just because I'd decided to sprog.

I was back at the desk 2 days after having my last child (took a year out with my first two when I was on maternity pay. Luckily my work was also quite sporadic so I wasn't tied to the desk every day, just when absolutely necessary.

I'd also saved up quite a bit (probably a bit late for that now unless you have started) and, yes, I believe many people (not me obviously ) simply invoice after their maternity leave comes to an end.

Thanks to both of you for replying.
So, do HMRC not do some sort of checks to see if people have actually been working? I'm guessing it would be too difficult to prove, but just wouldn't want to be caught out!

Tiger
HMRC are in such a flat spin of poor morale and job cuts that chasing up the validity of £800 ish of Maternity allowance is pretty low on their priorities!!!

Ditto about the invoices, you could always take a while to send them to whoever, if you're starting MA in May and working in December you'll be near the end.

You are allowed some KIT (keeping in touch) days, I think you are allowed 10 but check that. The main problem with these is that 1 minute of work counts as a day, as does 10 hours which doesn't lend itself to the way most self employed people and businesses work. However it is unlikely the MA people will be checking this out exactly.

The other thing is to do the work for free? Not great but if the value of the project is worth it, maybe a possibility. It's a crazy system for self employed people, as I think the rules were thought of for employees and then tried to fir around SE people.

Talk I thought so. HMRC are crap at their own admin aren't they? :)

Mafog - no, I couldn't do the work for free - it involves being away from home for at least 5 days or commuting back and forth each day, so DH would need to take those days off work to bring the baby with us, or I'd have to put DD in childcare. Travel costs and hotel costs on top of that would mean that I would be paying loads to do the work, rather than make anything from it.

I agree, the current system is rubbish - so surprised there isn't more guidance and info on the HMRC website about all of this.

Also, how can they establish what you earn in your test period, if you don't have payslips or invoices? Lots of the work I do is with individuals and is cash/cheque, not invoiced for...

I think most people who are self employed probably don't manage to take the full time they're allowed off - if they don't want to end up building up their business again from scratch afterwards.

That said, you can definitely do your 10 KIT days, and then it's sometimes possible to work a few days a week and get paid MA (at a reduced rate) for the other days.

I think if you are self employed, they automatically assume you earn enough to qualify for the full amount.

Thanks Bramshott