Child Benefit

Child Benefit

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No doubt there will be other queries but to kick off with this:-

Before the recent changes any woman who was in receipt of Child Benefit (Family Allowance) would also be credited with notional NIC payments towards the State Pension.

From January where there is someone in the household earning £60000 or above they will be ineligble to claim the benefit.. Will the NIC credit still be given

Also as a general point  when considering whether or not to claim,anyone who receives the benefit (up to £60000) will still get the relief no matter how much of the benefit is clawed back.

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By TickTock
04th Nov 2012 20:48

Still have to claim
Under the new rules the person receiving the child benefit can choose to opt out and not receive it (probably by filling in a form) if the highest earner has net income in excess of £60k.

However, if a new child arrives then the claimant should still claim the child benefit and also opt out to preserve their NIC pension credit (fill in two forms at the same time!).

If the highest earner has net income of between £50k and £60k then the child benefit will still be received in full and the income tax charge will have to be paid. I can't see that there will ever be a way of only claiming the amount you are entitled to!

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By bernard michael
05th Nov 2012 09:12

The problem as I see it is that if you opt out of receiving anything even if you're not entitled you won't get the NIC payment credit. If this is correct it is grossly unfair and not widely advertised 

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By TickTock
05th Nov 2012 12:13

I went on a course recently and the speaker was Rebecca Bennyworth. She seemed to think that as long as you claimed & then opted out you would still qualify for the NIC pension credit. However, as with all these things, the practical application will show where the limitations lie and where we have to advise clients to fill in forms 'just in case'!

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