National Insurance Credits for Grandparents

By 19th July 2019 Blog No Comments

Drummond Laurie Chartered AccountantsGrandparents and other family members under state pension age who look after children under 12 while their parents are at work may be able claim valuable tax credits. These are known as “specified adult childcare credits” and they count as a national insurance credit for those who don’t otherwise work. The reason this is important, is because you need at least 10 years’ worth of credits to qualify for the state pension, and at least 35 years’ to get the full £8,767.20 a year. Missing out on just a year’s credit could mean that you are losing out on £250 and over a typical 20 year retirement, this could amount to around £5,000.

YOU can apply for specified adult childcare credits if :

  • You are a grandparent, or other family member caring for a child under 12
  • You were over 16, and under state pension age when you cared for the child
  • You live in England, Scotland, Wales and Northern Ireland, but not the Channel Islands or the Isle of Man
  • The child’s parent (or main carer) is entitled to child benefit and has a qualifying year for national insurance without needing the parent’s class 3 national insurance credits which they receive automatically from child benefit – they can check their national insurance record online to see if they have any gaps in contributions
  • The child’s parent (or main carer) agrees to your application by countersigning the form to confirm that you cared for their child for the period stated and you can have their class 3 national insurance credit for the period stated

Please contact Lucy Murray at lucy.murray@drummondlaurie.co.uk if you would like to know more about this.

 

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