Parents, you could be losing entitlement to your future state pension!

If you are a parent and claim child benefits HMRC has confirmed that you could be losing out on part of your future state pension.

HMRC has recently written to the treasury and pointed out that if child benefits are being claimed by high earners, the partner who is earning a smaller amount in the household could be missing out on national insurance credits which would mean that they are reducing their statement pension entitlement.

It was confirmed that the government was warned a number of times already that within families where one individual is an earner and the other a non-earner if the earner claims child benefit, the non-earner loses their national insurance credit which in turn means access to their full future state pension.

Parents who are unsure about their position regarding this should speak to an accountant in London or a good tax specialist. The identification of this will mean no nasty surprises in the future.

Clear House are specialist Accountants in London who create smart accounting and tax solutions for businesses, sole traders and partners. If you have any queries of a specialist or a generalist nature, do not hesitate to contact us.