A couple of questions - but it's mainly for SAHM/D'S

Abbafan1972

Ok, the other day I was sorting through some paperwork for shredding and I found a letter I got ages ago saying there was a shortfall in my NI contributions, I think it might have been when I was on maternity leave the last time which was in 2004. And there was a payment slip attached, I just put it away and forgot about it (I haven't had one since). I'm not sure if I have to pay it or what, but that isn't my question. Seeing this letter just put a question in my mind.

If you give up work and become a SAHM or Dad, what do you do about your NI contributions then? Surely you don't sign on? And what happens about pensions etc.

Sorry If I sound thick, but how does the system distinguish between stay at home parents and people that are just work shy?

My DH works full time and I work Part time.

drwho2011

read this

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

Home Responsibilities Protection


Home Responsibilities Protection (HRP) was not a benefit but a scheme which between 6 April 1978 and 5 April 2010 helped protect your State Pension. Find out about how to make a claim for previous tax years and the new credits for parents and carers.

Who was eligible
Depending on your circumstances, either you qualified automatically for HRP or you will have to apply.

Qualifying automatically for Home Responsibilities Protection

You got Home Responsibilities Protection automatically if you were:

• getting Child Benefit in your name for a child under the age of 16 and you had given the Child Benefit Office your National Insurance number.

Applying for Home Responsibilities Protection

How it worked: When working out your basic State Pension, the number of years you got Home Responsibilities Protection was taken away from the number of qualifying years needed to calculate your pension. But for a full basic State Pension, Home Responsibilities Protection couldn't reduce the number of qualifying years below 20.

You also built up your additional State Pension if you qualified for Home Responsibilities Protection because you:

• got Child Benefit for a child under the age of six

Changes from April 2010 for parents and carers

Home Responsibilities Protection has been replaced for people reaching State Pension age on or after 6 April 2010. From 6 April 2010, parents and carers are able to build up qualifying years through new weekly credits for the basic State Pension and additional State Pension. If you are a parent or carer, you will get a credit for each week in which you:

• are getting Child Benefit for children aged under 12

There will be no limit to the credits awarded to parents and carers after April 2010, as long as you meet the qualifying rules. If you reach State Pension age on or after 6 April 2010, complete tax years of Home Responsibilities Protection you have already built up before 2010 have been converted into qualifying years up to a maximum of 22 years. These qualifying years will also count towards bereavement benefits.

Who wasn't eligible

In the following circumstances you would not usually have got HRP.

Married women or widows

If you were a married woman or a widow, you couldn't get Home Responsibilities Protection for any complete tax year if:

• you held a Married Woman’s Reduced Rate Election which was in force for that tax year
• you had chosen to pay reduced rate Class 1 National Insurance contributions as an employee (commonly known as the small stamp)
• you had chosen not to pay Class 2 National Insurance contributions when self-employed

How to claim

You can claim Home Responsibilities Protection by contacting HM Revenue & Customs to get application form CF411.