Guide discussion: Grandparents childcare credit

MSE_Ben_S

This is the place to discuss our new guide on grandparents childcare credit (known as Specified Adult Childcare credits).

We'd love to hear your thoughts, personal experiences, and general feedback. 

If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.'

PhilipParr

The Grandparents childcare credit really perked my ears up when mentioned during this weeks show, as my mum is approaching State pension age in October of this year, she quit her job 6 years ago to look after a grandchild and recently discovered that her NIC contributions were short by 4 years.

However, unaware that she could claim credit, she recently made a voluntary contribution of nearly £3000 on 10th January 2023, although this appears to not have been processed yet as her NI record has not been updated.

I called HMRC to see if it was possible to claim a refund and claim the credits, but was advised that this was unlikely as my mother should have explored this before making the voluntary contribution.  They did however advise to send a letter requesting a refund detailing reasons etc. and to send in the completed grandparents childcare credit form.

I was amazed by the response that a refund was unlikely giving the circumstances & of course my mother will be sending the letter and form as advised.

Any help or advise on our particular circumstance would be appreciated.

Thanks

Philip

molerat

A refund is generally only processed if there has been mis-advice by HMRC or paying pre 2016 years which did not increase the pension amount.  Successfully paying and increasing the pension amount and later finding out you could have done it another (cheaper) way (that has been well known on here for many years) is not generally considered reason for a refund.  You can try though.

PhilipParr

Fair point molerat, the fact that it hasn't been processed yet may be a point to argue.

I will need to clarify whether the cheque has even cleared yet, safe to say if it hasn't it will be swiftly cancelled.

Also, bare in mind my mother is not tech savvy, she called the pensions helpline before making the voluntary contribution and she was not made aware of this option at any point during the call.

Eldi_Dos

It is not the person receiving the credits who claims.

p00hsticks

Eldi_Dos said:

It is not the person receiving the credits who claims.

The claim has to submitted jointly, signed by both the person claiming the credits and the parent of the child being cared for who wil lbe giving up the Child Benefit credits.

Nanathome

A refund is generally only processed if there has been mis-advice by HMRC or paying pre 2016 years which did not increase the pension amount.  Successfully paying and increasing the pension amount and later finding out you could have done it another (cheaper) way (that has been well known on here for many years) is not generally considered reason for a refund.  You can try though

HI, just received my National Insurance record and it allows me to pay voluntary contributions back to 2006/2007 until this April. ( Found on another site, this is if you were born after 5/4/1953)
Shouldn't this then increase the pension amount you receive? 

Dazed_and_C0nfused

Nanathome said:

A refund is generally only processed if there has been mis-advice by HMRC or paying pre 2016 years which did not increase the pension amount.  Successfully paying and increasing the pension amount and later finding out you could have done it another (cheaper) way (that has been well known on here for many years) is not generally considered reason for a refund.  You can try though

HI, just received my National Insurance record and it allows me to pay voluntary contributions back to 2006/2007 until this April. ( Found on another site, this is if you were born after 5/4/1953)
Shouldn't this then increase the pension amount you receive? 

Maybe, maybe not.

You are under transitional rules so without details of your NI history and current State Pension forecast (not the £185.15, the amount you have actually accrued to date) no one could say with any certainty.

Might be a great use of your money.  Might be a complete waste.

Nanathome

I have this question, if someone can help.

I reach retirement age at the very end of March 2024.I will be a year short for a full pension.
To claim SAC credits for 2023/2024 I have to wait until October 2024.

Will this;
1) be too late to be added to my record as another qualifying year
2) if accepted, will my pension payment be increased to reflect the extra year's contribution
3) and the difference backdated?

I only have until this April to buy extra years at the rate stated.
Thank you.

Nanathome

Dazed_and_C0nfused said:

Nanathome said:

A refund is generally only processed if there has been mis-advice by HMRC or paying pre 2016 years which did not increase the pension amount.  Successfully paying and increasing the pension amount and later finding out you could have done it another (cheaper) way (that has been well known on here for many years) is not generally considered reason for a refund.  You can try though

HI, just received my National Insurance record and it allows me to pay voluntary contributions back to 2006/2007 until this April. ( Found on another site, this is if you were born after 5/4/1953)
Shouldn't this then increase the pension amount you receive? 

Maybe, maybe not.

You are under transitional rules so without details of your NI history and current State Pension forecast (not the £185.15, the amount you have actually accrued to date) no one could say with any certainty.

Might be a great use of your money.  Might be a complete waste.

Thank you for replying,
 state pension forecast is below the £185.15 but not sure what transitional rules means. 

molerat

Nanathome said:

Dazed_and_C0nfused said:

Nanathome said:

A refund is generally only processed if there has been mis-advice by HMRC or paying pre 2016 years which did not increase the pension amount.  Successfully paying and increasing the pension amount and later finding out you could have done it another (cheaper) way (that has been well known on here for many years) is not generally considered reason for a refund.  You can try though

HI, just received my National Insurance record and it allows me to pay voluntary contributions back to 2006/2007 until this April. ( Found on another site, this is if you were born after 5/4/1953)
Shouldn't this then increase the pension amount you receive? 

Maybe, maybe not.

You are under transitional rules so without details of your NI history and current State Pension forecast (not the £185.15, the amount you have actually accrued to date) no one could say with any certainty.

Might be a great use of your money.  Might be a complete waste.

Thank you for replying,
 state pension forecast is below the £185.15 but not sure what transitional rules means. 

Transitional rules are for anyone with a pre 2016 NI history, you are on a hybrid version of the new and old schemes combined.

If you already have 35 or more pre 2016 years then any more definitely will not add to your pension.

Bringing up to 35 may add to your pension depending on circumstances, mainly around any COPE amount in your forecast.

If you have less than 30 pre 2016 years then bringing up to 30 will definitely add to your pension.

If you want to post up the details of your forecast someone will talk you through it.