Maternity pay and working for yourself

[Oenopod]

First post - long-time lurker...

I work for myself, I have a limited company with me as a director and sole employee (DH is a director but only has responsibility for some limited admin - he has full-time job elsewhere).

We are sort of TTC but I am ambivalent about it, partly because I cannot fathom how the company could continue to operate without me and also how on earth maternity pay would work. (This is also why I started to lurk on Mumsnet - trying to gauge what being a working mother would really be like)

I pay myself an irregular amount each month, depending on how much money is in the company account after expenses. So, if I were to get pregnant, and assuming the company can afford to keep paying me something, what help would I get from the government? Does SMP come from them or the company (i.e. me)? And how would it be worked out? Bearing in mind I don't have a regular salary?

Thanks for reading!

The company would be able to claim back SMP from HMRC. As a very small company you'd get I think about 104% of SMP, which is an acknowledgement of additional costs incurred in replacing someone on maternity leave. You can get this paid by HMRC upfront then pay it yourself instead of salary. The extra 4% goes into the business.

SMP is based on average earnings between weeks 17 and 24 of pregnancy, so bear that in mind when paying yourself once you are pregnant.

Hope that makes sense. I own my own company and am technically an employee and have recently had a baby so I've done it recently.

That is very reassuring to know. Thank you very much. I was despairing that I would ever get the company to a position where I could take an extended break (probably a couple of months at most!).

Could you point me to the right place on the HMRC website where I can read about it? I find their site a nightmare to navigate. Only if you have the link to hand, please don't go out of your way.

Many thanks again - much appreciated. My DH will also be pleased as I keep putting off TTC because of this!

No worries. Stuff here for employers about statutory payments including SMP.