health
The maternity and mortgage struggle of being self-employed: ‘It was overwhelming at times’
Buying a house or having a baby has turned into a financial nightmare for those who are their own boss
TL;DR
- Self-employed mothers face long delays in receiving statutory maternity pay (SMP) from HMRC, with some waiting up to a year or more.
- HMRC's systems are not designed for self-employed individuals with limited companies, leading to manual processing and significant delays.
- Obtaining a mortgage is significantly harder for self-employed individuals on maternity leave, as lenders focus on reduced income, often averaging over several years.
- Many self-employed mothers are forced to return to work part-time or full-time much earlier than desired due to financial pressures.
- Maternity Allowance, an alternative for sole traders, can result in lower payments compared to SMP due to the absence of a six-week average earnings uplift.
- Compared to the UK, many European countries offer more supportive paternity and maternity pay policies for the self-employed.
- Self-employed fathers in the UK receive no statutory paternity pay, putting them at a disadvantage compared to employed fathers and self-employed fathers in other European countries.