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child benefit and NI credit

child benefit and NI credit

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if individual cancels CB as partner earns over £60k can that individual still get an NI credit for state pension purposes?

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By lionofludesch
04th Jul 2019 12:40

Yes.

But they need to register for Child Benefit and then disclaim it.

Or claim it and pay it back. Whatever.

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By nick farrow
04th Jul 2019 12:41

thanks Lion

register and disclaim

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By David Heaton
04th Jul 2019 18:15

Given that domestic relationships can be a little more fluid, and employment less secure, than in the good old days, I would be inclined to claim the CB and bank it in a separate account. If the high earner is still in the job and in the family at the end of the year, give it back through SA. If the job is lost, or the family breaks up, it's possible that it is free money. If you simply register and disclaim, and it all goes wrong during the year, you can't make a retrospective claim for CB that would have been due if you hadn't opted out. And there's the added bonus of 0.1% APR interest on the bank account ...

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Replying to David Heaton:
RLI
By lionofludesch
04th Jul 2019 22:40

David Heaton wrote:
If you simply register and disclaim, and it all goes wrong during the year, you can't make a retrospective claim for CB that would have been due if you hadn't opted out.

That is definitely not correct, as I've had a client who did precisely that. Bizarrely, the mother had to claim for the whole amount due, then the father had to pay about 30% of it back as his income fell around £53,000.

What is important is that you register. Claiming is optional.

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By Chipette
04th Jul 2019 18:35

The CB form now includes a tick box to say you do not want to be paid Child Benefit but you wish to protect your state pension.

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By nick farrow
05th Jul 2019 11:53

many thanks David Lion & Chipette - v interesting range of options but the tick box makes a lot of sense

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