How to Start a Business During Maternity Leave
Legal Framework for Working During Maternity Leave
Generally, if you engage in paid work during maternity leave, you typically lose your entitlement to statutory benefits such as Statutory Maternity Pay (SMP) or Maternity Allowance (MA).
This principle is intended to ensure that the financial support provided to new mothers is not undermined by additional income. However, there are exceptions that allow certain types of work without affecting your statutory benefits.
Self-Employment: The Key Exception
If you are on maternity leave and receiving SMP, Statutory Adoption Pay (SAP), or Shared Parental Pay (ShPP), you can work on a self-employed basis without it affecting your pay. Working Families This means you can start and run your own business while continuing to receive your full statutory maternity benefits.
The crucial condition is that your self-employment must be genuine. The rules around self-employment are designed to help employees supplement their maternity pay, such as running an online business from home or doing consultancy work. DavidsonMorris You can't simply be re-hired by your current employer as a freelancer to do the same job — that wouldn't count as genuine self-employment.
If you're receiving Maternity Allowance (rather than SMP), the rules are different. Any self-employed work counts towards your 10 KIT day limit. If you work more than 10 days, your MA payments could be stopped. Always check with Jobcentre Plus before starting any work while on MA.
Keeping in Touch (KIT) Days During Maternity Leave
Keeping in Touch (KIT) days represent a legal and structured way for employees to maintain contact with their workplace during maternity leave. These days allow you to work up to 10 days without affecting your maternity leave or statutory benefits. For those taking parental leave, up to 20 Keeping in Touch (SPLIT) days are allowed.
These provisions help facilitate the return to work and ensure that employees stay updated on company developments. However, KIT and SPLIT days must be mutually agreed upon, emphasizing the voluntary nature of this arrangement.
The Opportunity for Entrepreneurship During Maternity Leave
The regulations concerning work during maternity leave are designed to protect employees' rights while also opening doors for entrepreneurship. With an increasing number of women opting to start their own businesses during maternity leave rather than returning to traditional employment, the so-called “mom economy” is significantly strengthened. It is expected that this trend will contribute £9.5 billion to the UK economy by 2025. Businesses started by mothers offer flexibility and independence—qualities often lacking in conventional employment.
Practical Steps to Starting Your Business
1. Define your idea and validate it - Maternity leave gives you time to think — use it wisely. Write down your business idea, identify your target customers, and do some basic market research. Online surveys, social media polls, and talking to people in your network can help you test whether there's real demand for what you want to offer.
2. Handle the legal basics - Register as self-employed with HMRC. If you're a sole trader, this is quick and free. You'll need to file a Self Assessment tax return and pay Class 2 National Insurance contributions (currently £3.50 per week). These NI contributions are actually valuable — they count towards your state pension and can also help qualify you for Maternity Allowance in future pregnancies.
3. Build your online presence - Set up a simple website and social media profiles. You don't need anything expensive at the start — platforms like Etsy, Instagram, or a basic WordPress site can be enough to start reaching customers. Focus on building your brand and creating a portfolio of your work or products.
4. Plan around your baby's routine - This is where the flexibility of self-employment really shines. Many business-owning mothers work during nap times, in the evenings, or on weekends. The key is setting realistic expectations — you won't have a full working day, and that's absolutely fine at this stage. Focus on one or two high-impact tasks each day rather than trying to do everything.
Sarah was on maternity leave from her marketing job and started a freelance copywriting business. She worked 10–15 hours a week during her baby's naps and after bedtime. Because her work was genuinely self-employed (her own clients, her own invoicing, her own tax obligations), her SMP from her employer was unaffected. Within six months, she had built a steady client base and decided not to return to her old job.
5. Set a realistic timeline - Don't try to launch everything in the first week. Use the early months (when you're mostly recovering and adjusting) for planning and research. The actual launch can come later when you feel ready. Remember, the compulsory maternity leave period is two weeks after birth — during this time, no work at all is permitted.
What Kind of Business Can You Start on Maternity Leave?
The best maternity leave businesses have three things in common: you can run them from home, they don't need fixed hours, and they can grow gradually. Here are some of the most popular options:
Freelancing — writing, graphic design, marketing, web development, bookkeeping, or translation. Low startup costs, flexible hours, and you can begin with skills you already have.
E-commerce — selling handmade products, vintage finds, or curated goods through Etsy, eBay, or your own online shop. You list products during nap time, pack orders in the evening.
Online tutoring and coaching — if you have expertise in a language, school subject, or professional skill, you can schedule sessions around your baby's routine. Platforms like Tutorful or Superprof make it easy to find students.
Virtual assistance — many small businesses need remote help with admin, email management, diary coordination, or social media. The work is entirely flexible and done from home.
Content creation — running a blog, YouTube channel, or niche Instagram account. It takes longer to monetise, but if you're passionate about a topic, maternity leave gives you time to build an audience.
Baking, crafts, and personalised gifts — custom cakes, candles, jewellery, or prints. If you're already making things as a hobby, turning it into a business is a natural step.
Photography — especially newborn, family, or product photography. You understand what new parents want, and sessions can be booked on your terms.
Don't try to learn a completely new skill from scratch. The most successful maternity leave businesses are built on something you already know how to do — just packaged differently.
Conclusion
The regulations governing work during maternity leave are designed to protect employees' rights while also providing opportunities for entrepreneurship. For many women, maternity leave is a unique opportunity to explore new business ventures and contribute to the growing mom economy. By understanding the legal framework and strategically planning business activities, new mothers can successfully navigate the challenges of maternity leave while laying the foundation for a successful business.
