Important information for UK mums, especially sahms / those not getting mat pay

[Amygdala]

Important information for UK mums, especially sahms / those not getting mat pay

Hi everyone!

I know it probably sounds naive to some but after 5 years of being a stay-at-home-mum/an unpaid student mum, I have just found out about national insurance credits. If you care for a child under 12 years of age but are not required to pay national insurance (typically because you don't have an income), you get national insurance credits towards your pension entitlement IF you claim child benefit (or are registered for it). So while it doesn't matter in practise which parent claims child benefit, if one of you is working and one isn't, it's important the stay-at-home parent claims in their name. You can also apply to have national insurance credits transferred in hindsight but it makes things more complicated.

 

[c1403]

Interesting, do you have to do anything to get the national insurance credit?
I do work part time but do not earn enough to even pay NI. Child benefit is in my name also.

 

[Perkins]

Going to look into this thanks

 

[Bevziibubble]

I didn't know about this either. How would I go about this?

 

[Babybump87]

I didn't know about this either. Just had a quick look on the gov website apparently we should get them automatically.

Parents and foster carer

Your situation on or after 6 April 2010

How to get credits
You’re a parent registered for Child Benefit for a child under 12 (even if you don’t receive it)
You get Class 3 credits automatically

 

[Bevziibubble]

That is a relief that it's automatic

 

[Perkins]

Glad it's automatic

 

[Rags]

It's a very important reason for SAHM's to claim their child benefit even if their partner earns well. Although they may have to pay the benefit back each year while they are claiming it they are still accruing national insurance credits which are needed to have a full pensions entitlement in their own name when they reach that point in their lives.

 

[Bevziibubble]

Why will they have to pay the child benefit back?

 

[Rags]

Why will they have to pay the child benefit back?

A few years ago child benefit became income linked. There is a maximum individual income allowable after which when you submit a tax return the equivalent amount of child benefit is taken back - https://www.gov.uk/child-benefit-tax-charge/overview This is a link to the uk-gov site with more information. So although it may be that the individual income is to high to keep the money involved if you are a stay at home mum you are at least still gaining the NI credits.

 

[Bevziibubble]

Thank you for the link