Have you elected not to claim child benefit?

5th October 2018

You may wish to consider the implication this could have on your state pension in later life.

Following the introduction of the high income child benefit charge in January 2013 many new parents have decided not to make a claim for child benefit as their individual income is well above the threshold to be fully clawed back. Although this seems like a sensible idea, in practice this may mean a stay at home parent is not entitled to a full state pension in later life.

Until your child is 12 years old one full year of a child benefits claim, even if you opt not to receive the income, will provide a year of national insurance credits to count toward your qualifying years for state pension purposes (35 qualifying years are required to receive the full new state pension for those born after 1951, at date of writing).

Therefore it is a good idea for a non-earning partner  to register for child benefits and opt not to receive the income to ensure that he or she will still get their national insurance credit.

You can check how much state pension you could currently receive and ways to increase this here: https://www.gov.uk/check-state-pension

You can check your national insurance record for gaps in qualifying years here: https://www.gov.uk/check-national-insurance-record

If you think the above may apply to your family or would like to discuss planning for retirement please give our offices a call.



 
Other items in Blogs
 
Paul Jefferson
22nd May 2020 Dividend update

It is common practice for director/shareholders to be paid a modest salary through PAYE and pay the balance of their remuneration in dividends.  This of course is perfectly permissible if the company has profits available to distribute to shareholders and there is no breach of directors’ duty.  Unfortunately, the dramatic effect that the Coronavirus is…

Read More »

Lisa Smith
19th May 2020 Covid-19 –Statutory Sick Pay Rebate Scheme

The Government have announced that the Statutory Sick Pay Rebate Scheme, which will enable employers with fewer than 250 employees to claim Coronavirus-related Statutory Sick Pay will launch online on 26 May 2020.   Employers are eligible to use the scheme if:   they’re claiming for an employee who’s eligible for sick pay due to…

Read More »

Nick Edgley
19th May 2020 Company cars and fuel during COVID-19

If you are an employee with a company car, and maybe fuel provided, it is worthwhile considering giving up the car, or fuel, during the current pandemic if you are working from home or furloughed.   A company car benefit in kind (BIK) is a set amount based on the list price and emissions regardless…

Read More »

Ian Piper
18th May 2020 Covid-19: Companies House dissolutions now put on hold

Like many Government departments, Companies House have relaxed various compliance requirements to support businesses to get through this Covid-19 period. In their latest announcement, they are making the following temporary changes to their strike off policies:   Voluntary (Form DS01 submitted) Strike Off Applications – Process halted after notice published in London Gazette. Automatic Dissolutions…

Read More »

Katharine Bebbington
13th May 2020 Be scam-aware – know the signs

We are in the middle of  the biggest crisis our country has seen in decades, and for the majority of us, we are all working together to get through this.   However this has created a new danger with cybercriminals looking to exploit our fears or to scam us financially.  You may receive emails or…

Read More »

Lisa Smith
7th May 2020 COVID-19 – Temporary Zero Rating of Personal Protective Equipment

HMRC have announced temporary zero rating of personal protective equipment (PPE) recommended for use by Public Health England.  This is good news for care homes and others that are incurring significant additional costs on purchasing PPE at the moment but are unable to reclaim VAT.  The zero-rating is effect for supplies made between 1 May…

Read More »