NI Credits 'Up for grabs' - Grandparents' childcare

wheresdaley

Hi all,

I've read through the below MSE article on transferring NI credits (I can't post link), I've done lots of research but can't find an answer to my question below on how to know if there are credits 'up for grabs'?


The above article states about the person who could transfer a credit that:
If that parent then starts to earn enough through employment to get a NI credit, the credit they received from their child benefit is up for grabs and can be transferred to a family member who's helping to look after the child. 

My wife looked after her sisters kids for a few years and there are potential credits to be transferred (its not only for grandparents). However my wife's sister cannot tell if she has 'earned enough' to have credits 'up for grabs' or not.

She has looked at her NI record on the gov website (I can't post link)

She definitely received child benefit and worked, but my understanding is a credit is only 'up for grabs' if you worked enough in that tax year to gain a NI credit through employment (as well as via child care)...But how to tell this?

My wife's sisters NI record has several FULL YEARs that look like this...,

2019 to 2020

Full year

You have contributions from

Paid employment: £264.16

National Insurance credits: 52 weeks

These may have been added to your record if you were ill/disabled, unemployed, caring for someone full-time or on jury service.

I presume the 'National Insurance credits: 52 weeks' is from the child benefit, but what is the 'Paid Employment: £264.16'? Does it signify a credit has been given via employment in addition to child benefit and is therefore 'up for grabs'?

My wife's sister does not have access to old payslips or P60's, so can we tell from the above info if there is a credit 'up for grabs' or not?

Thanks for reading this far and I hope this helps others too. 

molerat

HMRC will only transfer the credits out if it will not leave the donor short.  If she was earning in excess of £120 ish per week she would have earned class 1 credits.

DRS1

I have always assumed that the figure shown against Paid Employment is the amount of NICs paid by an individual in the tax year.  But how do you know if that is enough for a full year?  OK If that is all that is shown and it says Full Year then you know but what if it is  mixed, as here? 

If you get credits (or are self employed) it will tell you how many weeks of the year you have got which is a lot easier to understand.

molerat

Even better still if you get credits through just over the LEL earnings you can get a full year with nothing at all showing in the narrative.

wheresdaley

Thanks for the response, but the issue still remains that from the NI record if you receive Child benefits and income, CAN you tell if there is a credit 'up for grabs'?

I can see from my own record that the 'Paid Employment' figure matches my P60 'Employee's contributions due on all earnings above the PT'.

In theory, it means in the above example that the person has earned enough to get a credit 'up for grabs' for the year. But this is only true if that income was earned throughout the year ie at least £123 a week. But you can't tell looking at the info provided if this is the case. 

As for applying anyway, we'll probably do that but the form CA9176 states

Before you apply 
You must check that the Child Benefit recipient named on this application form did get Child Benefit Class 3 credits for the child you cared for in the period you cared for them. If you do not check this before you apply, your application form may be rejected and you will need to reapply

DRS1

In theory, it means in the above example that the person has earned enough to get a credit 'up for grabs' for the year. But this is only true if that income was earned throughout the year ie at least £123 a week. But you can't tell looking at the info provided if this is the case. 

Which is why I was saying it would be more convenient if the Paid Employment entry was eg 52 weeks instead of a figure.  I was hoping those who know might be able to say as long as the figure is more than x then it means she has a full year on employment NICs alone.  However surely you can just ask her about the periods you want to claim and whether she was working for the required period/earning the required amount?

As for applying anyway, we'll probably do that but the form CA9176 states

Before you apply 

You must check that the Child Benefit recipient named on this application form did get Child Benefit Class 3 credits for the child you cared for in the period you cared for them. If you do not check this before you apply, your application form may be rejected and you will need to reapply

I am not sure why you are concerned about that bit.  Is it possible she has NIC credits for something other than Child Benefit?  If not then surely it would only be an issue for a year where she has less than 52 weeks NIC credits?

wheresdaley

Thanks, yeah it would be good if someone could confirm that if there is a figure mentioned it DOES mean a credit has been earned from income, you would think so, but its not clear.,

Credits can be claimed back to 2011, she's not sure her income all the way back to then, which I think is fair enough.
I can put in the claim but wanted to minimise it being sent back because one of the years doesn't qualify.

Thanks for your help, I guess its just not clear.