Directors often ask whether they can claim Statutory Maternity Pay (SMP). The answer is yes — but only if certain conditions are met. If you’re a company director and planning for maternity leave, here’s a clear breakdown of the rules, calculations, and how payments are made.
Who qualifies for statutory maternity pay?
To be eligible for SMP as a director, you’ll need to tick a few important boxes:
-
Contract of employment – You must have a formal contract of employment with your company.
-
Continuous employment – You need to have been employed by your company for at least 26 weeks by the 15th week before your baby is due (known as the “qualifying week”).
-
Earnings threshold – Your average gross weekly earnings during the 8-week “relevant period” before the qualifying week must be at least the Lower Earnings Limit (LEL) for National Insurance. For the 2025/26 tax year, this is £542 per month.
-
Notice and proof – You must give your company at least 21 days’ notice of when you want SMP to start, along with proof of pregnancy (usually your MAT B1 certificate). See employer responsibilities on SMP (GOV.UK) for more detail.
How statutory maternity pay for directors is calculated
The amount of SMP you receive depends on your average weekly earnings (AWE) in the 8 weeks before your qualifying week. Here’s how it works:
-
Check eligibility – Confirm that the continuous employment and earnings rules are met.
-
Work out AWE – Based on the pay you received in the 8 weeks leading up to your qualifying week.
-
Apply SMP rates:
-
First 6 weeks – 90% of your AWE.
-
Next 33 weeks – The lower of 90% of your AWE or the standard SMP weekly rate (£187.18 for the 2025/26 tax year).
-
-
Payroll process – SMP is paid through your company’s payroll system and reported to HMRC.
-
Funding options – If you’re the only person on the payroll and no PAYE is being run, the company can apply for advanced funding from HMRC.
Worked example
Let’s take Sarah, a director and sole employee of her company:
-
Salary: £1,047.50 per month (£12,570 per year).
-
Baby due: 30 January 2026.
-
Maternity leave start date: 1 January 2026.
-
Qualifying week: 13 October 2025.
-
Average weekly earnings (AWE): As she is paid monthly, her AWE will be worked out as salary paid in September and August.
-
£1047.50 per month x 12 = £12570.00 per annum / 52 = £241.73 per week @ 90% = £217.55 (AWE).
-
Her SMP would look like this:
-
6 weeks at 90% AWE (£217.55) = £1,305.30
-
33 weeks at standard (Statutory) rate (£187.18) = £6,176.94
Total SMP = £7,482.24
Plus 3% compensation = £224.46
Grand total = £7,706.70
This amount is paid to the company to cover SMP and must be processed via payroll.
Pension contributions
Don’t forget pensions! During SMP, employer pension contributions must continue at the same level, even if your pay is reduced. This rule applies to directors as well as employees. You can check full details at The Pensions Regulator.
Business continuity tips for sole directors
If you’re the only director and employee in your company, claiming SMP is possible — but planning ahead will make life much easier. Here are some simple steps to consider:
-
Plan your workload early – Look ahead at deadlines like annual accounts, VAT returns, or Companies House filings and try to get them cleared before maternity leave starts.
-
Use your accountant – Your accountant can handle payroll, HMRC filings, and statutory submissions while you’re away. This is often the smoothest solution.
-
Consider subcontracting – If your business relies on day-to-day client work, hiring a subcontractor on a temporary basis can keep things moving.
-
Pause trading temporarily – Some sole directors choose to reduce or pause business activity during leave. This is perfectly acceptable as long as statutory duties (like filing deadlines) are still met.
-
Set up clear client communications – Let clients know about your plans, set expectations, and put autoresponders in place so they feel looked after.
Key takeaways
-
Yes, directors can claim SMP, but only if they meet the employment, earnings, and notice requirements.
-
SMP is based on average weekly earnings and follows the same structure as for employees: 6 weeks at 90% followed by 33 weeks at a standard rate.
-
Funding support is available from HMRC if you’re the only person on payroll.
-
Pension contributions must continue during SMP.