Child Benefit & HRP

ab7167

When I lose my Child Benefit due to OH being a higher rate taxpayer, will I also lose the state pension credits that go with it if I'm not working? I work and pay full NI currently, but this may not continue. I don't object to losing CB, but may need to plan to keep up pension contributions separately..

[Deleted User]

good question,can only assume as i think you do that loosing CB will mean loosing HRP,however keep in mind that you now only need 30years contributions for a full state pension not 40+ as previously so if you work e.g from 18-62 thats 44 years take off 14 years for being a mum and youve still got 30 years

zagfles

Too early to say because the technical details haven't been announced and it's not happening till 2013 anyway (if it ever does).

But from what's been said so far it would seem that you will still have the right to claim CB but your OH will somehow be taxed extra if you do claim. How is unclear - they'll run into the same problem as when Gordon Brown had the same hair-brained plan to tax CB for higher rate taxpayers and gave up when it was pointed out that taxation is independant. And there's no way the govt are going to undo independant taxation as that would cost them a fortune!!

ab7167

That'll be why Google doesn't find anything on this topic then :-) Ah well, just have to wait and see then.

nannytone_2

its likely that cb will still be paid, so you will get your NI contribution paid too.
the money will be clawed back from the tax side of things.

Sixer

Don't forget that from this year, it's not called HRP any more, and it stops when your child is 12:

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/Caringforsomeone/DG_10018691