Grandparent child care credits

JoeBlaney

Hi my daughter in law has recently returned to full time employment We have discussed my claiming the grandparents childcare NI contributions. We meet all of the criteria but my son, also fully employed is worried it will affect their tax code or their NI contributions. The passage they are worried about is "Transfer / Give up their Child benefit credit" I would like to claim but do not want them to lose any money in this cost of living crisis

p00hsticks

They won't lose any money. 

Whichever of them is claiming the child benefit will continue to get the money, but if they are earning sufficient NI credits through working for the year to count as full, then the credits associated with the child benefit can be transferred to you rather than wasted. 

My understanding is that HMRC will check at the end of the tax year  that the parent has accumulated a years NI in their own right and will only reallocate the ones associated with the child benefit if this is the case. That's why it takes so long after the end of each tax year for the claim to be processed. 

HillStreetBlues

If you haven't read it a MSE guide is here