More than 200,000 people are missing an advantage that could provide them with additional retirement species, according to new data obtained by the monetary team.
At least 214,000 people do not claim a children’s service and free national insurance credits that accompany them, although they are eligible, according to HMRC data published after a request for freedom of information.
It is 66,000 people over five years ago.
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The children’s service is worth £ 26.05 per week – or £ 1,354.60 per year – for the elder or unique.
This is worth £ 17.25 per week – or £ 897 per year – for each additional child.
You can claim it if you are responsible for a child under the age of 16 or under 20 and still in education or training.
It is automatically paid to your bank account every four weeks.
Retirement often neglected upside down
Although many are experiencing children’s services, they may not know the free national insurance credits that come from it.
If you have claimed a children’s service for a child under 12 on April 6, 2010, you will get class 3 credits, which count for your state pension.
To obtain a full retirement state board, you must have 35 years of eligible national insurance contributions.
You can obtain these eligible years thanks to the work and payment of taxes on your earnings or your national insurance credits.
When you claim a children’s service, you will get these credits automatically until your youngest child is 12 years old, even if you don’t win.
How much could you miss?
One year of national insurance contributions can increase your state pension by around £ 6.58 per week, or £ 342.16 per year (until you reach the maximum amount).
This means that if you take free time to take care of your child until they start at school at the age of four, you could miss £ 1,368 per year in your state board.
If you do not return to work before you start high school at 11 years old, you could miss £ 3,763 per year.
And if you do not claim at all while you are eligible, this amount can reach around £ 4,105.
But by demanding a children’s service during this period, you connect the difference in national insurance contribution in your file and maintain this amount.
“If the parents have several children, the gap could be even longer, if they do not work throughout this period,” said personal finance director at Aj Bell told Money Laura.
“Getting free credit for national insurance is a lucrative decision.
“You can pay to voluntarily complement your national insurance file, but it would cost you £ 923 to do it for each year you want to do it.”
Pic: Istock
How can you claim?
You can claim a children’s service and the national insurance credits that accompany him, 48 hours after registering the birth of your child, or once they come to live with you.
It can be rear up to three months from the date on which you make the complaint.
Only one person can claim the benefit per child, you will therefore have to decide whether it is preferable for you or the other parent to claim (more about the reason why little time).
If you have more than one child, you can both claim different children.
The person who claims will receive national insurance credits, but they can be transferred to your partner at the end of each taxation, if necessary.
You can submit your complaint online here.
What should you be aware of?
Although everyone can claim a children’s service, if you earn more than £ 60,000 for the tax year, you may have to pay high children’s income costs. But you will always get national insurance credits.
The amount you are billed depends on the quantity you earn. If it is between £ 60,000 and £ 80,000, you must reimburse 1% of the children’s service for each £ 200 income. So if you earn £ 65,000, you will reimburse 25% of the service.
Once you have reached £ 80,000 or more, this is equivalent to the entire children’s service – so you reimburse all this.
You pay the fees with a self-assessment income tax return.
“As income has increased during a period of high inflation and wage growth, more people will reach high income costs for children’s services,” added SUTER.
“The decision to increase the upper limit of £ 60,000 to £ 80,000 will help to mitigate part of this, but this always means that a couple with a larger employee will not be eligible to claim a children’s service.
“However, they can always claim the national insurance credit without claiming real money.”
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Can you withdraw from the advantage but keep the Ni credits?
If you do not want to receive children’s services, but you want to continue to obtain national insurance credits, you can specify in a complaint form.
You can do it online hereby post or by phone.
If you are not sure of the number of qualification years you have on your national insurance file, you can check this here.