Maternity leave and trading / sole trader

GoldenFruit

Hi

I’m in full time employment and my wife is on maternity leave. Full pay for 6 months then statutory pay. Can she work (ie sole trader or through limited company) during maternity leave or restricted? If so is it better I register as a sole trader or set up limited company to sell goods and services online? 

Thanks 

liz_bartun

If she takes on other employment her maternity pay would end. She can work up to 10 "kit" days (keep in touch) for her current employer without it affecting her maternity pay.

I don't fully understand your question about whether you should set up as a sole trader or limited company - your income doesn't have any bearings on her maternity pay. Or is it that she will be running your venture while you're in employment elsewhere, and it's going to be in her name/she'll be a director?

GoldenFruit

Hi @liz_bartun Yes, it's the latter. She had a limited company (now dormant) and if a new venture is started up what is the best way to run it without complications for her maternity pay. It sounds as though it should be in my name as director for easiest routematernity

Marcon

She can work on a self employed basis (but not for her current employer) without it affecting her maternity pay. See https://workingfamilies.org.uk/articles/what-work-can-you-do-during-maternity-adoption-parental-leave/

chrisbur

https://workingfamilies.org.uk/articles/what-work-can-you-do-during-maternity-adoption-parental-leave/

Some good guidance here 
Note difference between rules for SMP and Maternity allowance I assume SMP in this case.
Also need to consider if employer would object if they knew as extra money being paid above SMP the advice given in the link only relates to SMP.  Not sure if limited company counts as self employed not something I know about.