National Insurance Credits for Grandparents

National insurance credits are given to a parent or main carer for children aged under 12 if they claim child benefit.  If the parent or main carer work and contribute national insurance through their employment income, then the national insurance credit from the child benefit claim could be transferred to a grandparent (since they have already satisfied the state pension credit through their employment) if they provide childcare to their grandchildren. If there is no child benefit claim, then there is no credit to be transferred.

The credits can be used to help fill any gaps for the grandparents’ state pension credit record and can be backdated as far back as April 2011 if the childcare was in place.  This can save the grandparent quite a sum of money as to pay back any gaps in state pension can be quite costly!

To make an application there is a form on the HMRC website titled Application for Specified Adult Childcare Credit or you can click the link:

https://public-online.hmrc.gov.uk/lc/content/xfaforms/profiles/forms.html?contentRoot=repository:///Applications/NICs_iForms/1.0&template=CA9176_en_0.5.xdp

The form will need to be completed by both the parent or main carer of the child and the grandparent wishing to apply for the transfer of credit.

Applications should be made after 31^st October after the tax year or years you are claiming for.

Please contact your local Perrys office if you have any questions or require any assistance with the application.