Topping up NI Contributions and Specified Adult Childcare Credits

QrizB

ironlady2022 said:

Hi again, I was just thinking when the new pension raises to £230.30pw in the new tax year.
The gap between the £158 and new amount would be £72.30. So based on above, plugging 5th year, would that gain her £6.32? And takes her to £224.84, would she then need another year?

I'm not molerat but I think I can answer this ...

A post-2016 year is worth 1/35th of the new state pension (NSP). Currently the NSP is £221.20 and 1/35th is £6.32.

Once the new tax year rolls around and the NSP increases to £230.30, a post-2016 year will be worth 1/35th of that, which is £6.58. All the calculations will need to be revised accordingly but the end result is that if you currently need five years to reach a full NSP, you'll still need five years.

molerat

QrizB said:

ironlady2022 said:

Hi again, I was just thinking when the new pension raises to £230.30pw in the new tax year.
The gap between the £158 and new amount would be £72.30. So based on above, plugging 5th year, would that gain her £6.32? And takes her to £224.84, would she then need another year?

I'm not molerat but I think I can answer this ...

A post-2016 year is worth 1/35th of the new state pension (NSP). Currently the NSP is £221.20 and 1/35th is £6.32.

Once the new tax year rolls around and the NSP increases to £230.30, a post-2016 year will be worth 1/35th of that, which is £6.58. All the calculations will need to be revised accordingly but the end result is that if you currently need five years to reach a full NSP, you'll still need five years.

As above.  Her £158 will become £164.46 so £230.25 - £164.46 = £65.79 / £6.58 = 10

ironlady2022

@QrizB @molerat thank you both, makes perfect sense!

ironlady2022

@molerat sorry just one more question came to mind. Wonder if you can help.

So for my daughter, I was working in 22/23 tax year as well and claiming child benefit. If this year is transferred to my Mum through the SACC, do I then have a gap for that same year?

Or do I keep my work NI credit, and Mum gets the child benefit NI credit? 

molerat

You can only transfer the CB credit if you are also receiving a credit through another method so they will not transfer the child benefit if it would leave you short.

ironlady2022

molerat said:

You can only transfer the CB credit if you are also receiving a credit through another method so they will not transfer the child benefit if it would leave you short.

That's fine. Thank you. 

So essentially if I have a double credit year, Mum can have it without affecting my own records

ironlady2022

@molerat I asked my Sis to pay for one of her years at £507, as I thought she would lose it when gifting a more recent year to my Mum. (I did not want her to have to work one more year to get the required years for the SP).

She sent it Fri at 10pm to the HMRC bank account with ref no.

What are the chances she can ask for a refund back now? As I know it takes 8-10wks to update.