In the past, paternity leave wasn’t guaranteed, but employed workers are now entitled to a minimum of two weeks of paternity leave after the birth of their child. Unfortunately, this benefit doesn’t extend to self-employed individuals.
Currently, self-employed fathers have no legal right to paternity leave or pay. This means planning ahead during the pregnancy is essential for fathers wishing to take time off to bond with their newborn.
This article will cover paternity leave options for the self-employed, offering advice on managing finances and workloads effectively.
How does paternity leave work for the self-employed?
As a self-employed individual, you have control over your work schedule and can decide how much time you want to take off after the birth of your child. Whether it’s a few days, two weeks, or a year, planning for the financial impact is crucial.
The uncertainty of a baby’s arrival, especially for those with clients, can be challenging. It’s important to communicate with your customers and set clear expectations regarding your availability.
Having two plans in place is wise, particularly if your partner needs more recovery time or if there are complications during childbirth. Consider:
- Plan A: The amount of time you aim to take off after the baby arrives.
- Plan B: A backup plan for extending your leave in case your partner needs additional support.
Can self-employed dads receive paternity pay?
Unfortunately, statutory paternity pay is only available to employed fathers who meet certain criteria, such as having worked for their employer for at least 26 weeks by the 15th week before the baby is due.
Self-employed dads should ideally start saving for paternity leave as soon as possible, even before their partner is pregnant. This reduces the financial burden by allowing more time to build up a savings fund. If that’s not feasible, it’s crucial to start planning finances as soon as the pregnancy is confirmed.
Discuss with your partner how much time you’d like to take off and estimate the funds needed to cover bills, baby-related expenses, and any emergencies. Once you’ve calculated the total, determine how much to save each month before the baby’s arrival.
If you plan to take more than two weeks off, consider setting up a separate savings account for your paternity leave fund to avoid using it for other expenses.
The exception
There is an exception where self-employed fathers may qualify for statutory paternity pay: if you’re paying Class 1 National Insurance (NI) contributions and receiving income via PAYE. It’s best to consult with an accountant to explore this option.
Tips for managing paternity leave as a self-employed dad
Paternity leave can be stressful for self-employed fathers, as there’s no financial support from the government. However, careful planning can alleviate this pressure. Here are some tips:
- Cancel unnecessary direct debits and add the savings to your paternity leave fund.
- Take on extra work during the pregnancy to increase your savings.
- Check the current market rates for your services to see if you can charge new clients more.
- Block off your paternity leave on your calendar to avoid booking clients during that time.
- Inform clients in advance of your paternity leave dates and set up an “out of office” response for emails.
- Understand your financial needs for the leave period and save accordingly, with extra funds for unexpected expenses.
Managing your business during paternity leave
If you run a business with employees, delegating tasks can help maintain operations while you’re on leave. Assign key responsibilities, such as handling customer queries, to your team and let them know you’ll be less available during this time.
If you work solo, inform your clients in advance of your paternity leave and how it might affect them. Some new dads choose to answer emails in their spare time, while others take a complete break from work. The decision is personal, so find what works for you.
In certain cases, you might be able to pass on work to a trusted colleague. Communicate this possibility to your clients to see if they’re open to working with someone else temporarily. Ensure that whoever you choose to cover for you is reliable and understands your expectations, as your business reputation will be in their hands.
Final thoughts
Navigating paternity leave as a self-employed father can be challenging, but with proper planning and preparation, it’s possible to enjoy time with your new baby without financial strain. Start planning your finances as early as possible to ensure your paternity leave is stress-free and filled with special moments.
By Kirstie Pickering, Business Journalist
Kirstie is a freelance journalist specializing in tech, startups, and business. She writes for various publications, including Sifted and UKTN, and works with agencies to create content for startup and scaleup clients.
