It is common knowledge that many high earners have stopped claiming child benefit because it generates a tax charge which wipes out the benefit.
On the face of it – no problem. However, if your partner either doesn’t work, or is low paid, and you have a child born after January 2013 your partner will lose National Insurance credits. This means your partner’s pension claim will be reduced (as a full 35 years’ worth of NI credits are required to receive a full state pension).
I was alerted to this by one of my accountant contacts Harbour Key. Full details can be found in their December newsletter.
Females have already been seriously hit by rising state pension ages. Don’t add to those problems by losing national insurance credits unnecessarily.
Click on the links below to some of my historical blogs – these may be of interest.
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