We all know that, should your or your partner’s individual income exceed £50,000, you must pay a tax charge on your child allowance.
But many people earning a salary of more than £60,000 aren’t claiming child allowance at all, and this could be having a significant impact on their state pension.
As a parent, you have a choice over whether to obtain Child Benefit payments or not, but you should still fill in the claim form because if you don’t, you could lose National Insurance credits, which count towards your state pension.
Filling in the form, and then opting out, also ensures your child is registered to receive a National Insurance number after their 16th birthday.
It costs nothing to fill in the form and will help you and your family further down the line.
Alan Mellor said: “Many people choose not to obtain child allowance at all when they reach a salary of more than £60,000, but it is really important that you fill in the claim form and then opt out to ensure you don’t lose out in the future.”
If this affects you and you would like some help planning your finances, contact Alan and the team on 0151 353 1066.