I run my own small business as a sole trader, but I am about to have a baby. I have claimed Maternity Allowance. I know I will lose MA if I work. Will I have to keep going and have no leave or can I get my mum to cover for me while I am taking some time off just to keep the business ticking over?
There is absolutely no problems with a sole trader employing a member of the family. Provided the rules of PAYE & NI are observed (If that person has no other job you can pay up to £149 per week without any Tax or NI implications).
Payment is recorded in the books as a labour or admin expense. The rate paid must be commensurate with the job specified [and must be at least minimum wage] and the payment must be handed over (i.e. it cannot just be a tax-saving device). Not enough sole traders use this!