Can you claim DSS Maternity Allowance and continue as a Sole Trader?

[JFG]

Hi, I set up my own business in February because I found out my employer won't pay me SMP and was worried how I'd make ends meet whilst on maternity leave. Now I understand I'm supposed to stop working in order to claim DSS Maternity Allowance.
Does anyone know what to do if you are a Sole Trader? Am I supposed to stop trading altogether or employ somebody to do the work for me?
The problem I have is, I've not yet taken an income from the business as I've reinvested all earnings back into stock. The profit I make has averaged out at £100 per month, so would have been nice to top up Maternity Pay but not enough to warrant paying someone else and not worthwhile forfeiting any due DSS Maternity Allowance!
Any advice would be welcome,
Many thanks,
Julie

Hi,

I'm a sole trader too and similarly don't take earnings from the business yet. As I don't have a small earnings exemption and have paid class 2 NI I'll get the full rate of Maternity Allowance (can't afford to miss out on it). I'm taking the full length of maternity leave and dh is going to take over doing all the business stuff - essentially he'll be a volunteer worker.

Hi,

Ah right, maybe my dh will do that for me.

I've looked into paying Class 2 NI and know that I'm not required to pay it because my earnings aren't high enough, but I can make voluntary payments. Maybe this would be worthwhile, but I'm unsure whether I'd qualify for MA after paying a couple of months NI ? (when I haven't paid any for about 16 months!!)

Have a read through this all about MA. It's quite lengthy but should answer all your questions about eligibility and working.

Thanks for the info. It looks like paying Class 2 NI contributions is definately the way forward. I will call DWP on Monday to find out whether these payments can be backdated to the business start date or not and keep you uptodate.

Thanks to both of you for your help, you've really helped to clarify things!

Julie