paid NI Contributions once child turns 12

Midnight_Tboy

Hi all,

Quick question please

My partner doesn't work and has been looking after the children.

From what I've been reading up on, apparently she has her National Insurance Contributions paid for by the government due to having a child under 12 years

So my question is.....This march our daughter turns 12 years old, so I presume that will now stop, and then have to either manually pay NI, or gain employment to have it paid from that

For this tax year however, how will that effect her? Will she lose the full year of NI cover? or only have the last few weeks to pay to top up to at least have it classed as a complete year?

Thanks in advance

calcotti

They only get the NI credits for the child under 12 if they are receiving child benefit for the child (or have claimed child benefit but elected not to actually be paid it to avoid the higher income tax charge).

If this applies I believe she will receive the credits until daughter turns 12 which means that if she wants to pay voluntary contributions to complete the year only a partial year will be required.

Midnight_Tboy

Thanks Calcotti.

Yes we receive Child Benefit. Glad that it should only be a couple of weeks worth to cover, as daughter will turn 12 in the back half of March.

To be honest, I've never even thought until recently of how my partners NI credits were worked out/covered, as since having kids and stopped work etc, way back then didn't even know anything about NI.

Any idea how much that will be for her? Will have to look at decisions too going forward, whether she should look at taking on some part time work etc to cover in the future, or whether to manually pay.

I checked for gaps, but the only gap she has had was from when a company she worked for went into liquidation and didn't pay her wages. Had I known back then we'd have topped up to get the full year, but this was around 16 years ago

calcotti

More information here https://www.gov.uk/voluntary-national-insurance-contributions

Midnight_Tboy

Thanks...ouch £15 a week...hope its the £3 - best get looking to find out which it will be.....cheers

p00hsticks

Midnight_Tboy wrote: »

Yes we receive Child Benefit.

You say 'we' - make sure it's in her name, not yours, in order for her to get the credits.

p00hsticks

Midnight_Tboy wrote: »

Thanks...ouch £15 a week...hope its the £3 - best get looking to find out which it will be.....cheers

It'll likely be £15 a week (class 3) - Class 2 (£3)is for the self employed.


Has your wife got a State Pension forecast ?

Most people don't need every possible year for the full pension amount, so if she was owrking before she had children or intends going back to work when they are older it may not be crucial for her to make voluntary contributions straight away.

Midnight_Tboy

Sorry yes it must be registered in her name (thankfully), as her previous years are "full year" on the pension record (except 2004 when the company she worked for went bust (typically just as she was about to go on maternity leave))

The forecast, which I looked at a bunch of months ago initially

was "You can get your State Pension on 10 May 2053.
Your forecast is £164.35 a week"

Estimate based on your National Insurance record up to 5 April 2018
Forecast if you contribute another 17 years before 5 April 2053
£86.60 a week"

So looks like 17years in total to be paid up going forward between now and 2053. Counted how many "full years" are on the statement and there are 16.

Well, probably 17 now as its a new tax year since I looked previously...so 16 more left to be covered for

But yes, very good point, no urgency to rush into a decision, approx 34 years to make 16 years up in

Thank you

calcotti

Plenty of time to make up the years and she has 6 years in which to top up the incomplete year should she wish to (although the rate may be higher if paid later). Having said that if the shortfall is only a few weeks it may be worth paying in order to ‘bank’ the year.

Midnight_Tboy

calcotti wrote: »

Plenty of time to make up the years and she has 6 years in which to top up the incomplete year should she wish to (although the rate may be higher if paid later). Having said that if the shortfall is only a few weeks it may be worth paying in order to ‘bank’ the year.

Yes I think so for this year, as it should only be 2-3 weeks worth I think, assuming its from the exact date of daughters birthday