Answer by Tracey Guest

The general rule is that if you begin a new job after your Statutory Maternity Pay (SMP) has started, you lose your entitlement to SMP (s.165(6) Social Security Contributions and Benefits Act 1992). However, this rule only applies if you start work for another 'employer'. As you are working as a sole trader and are self employed, then there is an argument that this rule does not apply to you and your employer should continue to pay your SMP. The other issue that may arise however, is your duties to your employer. If the new business you are setting up is in competition with your employer's, this may be a breach of your contract of employment. You should check your contract to identify whether you are permitted to start a new business and if so you should bear in mind your existing duties to your employer e.g. to keep their confidential information confidential. Tracey Guest is head of employment and a partner at Slater Heelis in Manchester. She specialises in employment law and is also a working mum.