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Specified Adult Childcare Credits
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Firstly, what a horrible name! We would prefer “Grand-parent credits” but anyway, simply put, do you have a gap in your national insurance record? And look after a family member under 12? You can possibly claim a FREE top up your National Insurance record for free!
Why is this important?
To receive a full “new state pension”, you need to have a “full national insurance record” which broadly means you have 35 “qualifying years” on your National Insurance (NI) record. These National Insurance years are often called “qualifying years”. To obtain a “qualifying year”, most people normally accrue them through working and paying NI but often people will have gaps meaning if action is not taken, their state pension could be reduced.
Gaps can happen for many reasons, but common ones include:
· Being abroad for a period of time – perhaps for work or immigration,
· Being unable or too ill to work,
· Being a parent or carer,
· Due to education like attending university for example.
How to find out if you have any gaps?
Simple, check your personal National Insurance record by completing a “BR19” (state pension forecast). Full instructions can be found here: https://financialfortress.co.uk/get-your-free-state-pension-forecast/
Remember, a state pension forecast is completely FREE!
As a quick guide, the full rate to top up the tax year 2023/24 would be £907.40. Take care though, topping up previous years can be cheaper.
Given the full, new state pension is worth £221.20 per week in 2024/25, this gives you £6.32 per week or £328.64 per year in GUARANTEED, EVER INCREASING (inflation proofed) pension income for the rest of your life! Ie: If you live for around 3 years after state pension age, you will be quid’s in! Given life expectancy for most is between 84 (men) and 87 (women), if you are in reasonable health, it is usually always going to be in your interest!
How it works
Firstly, a “specified adult childcare credit” claim can be backdated to April 2011.
Basically, here is how it works:
· You need to be caring for a child under the age of 12 who is a family member.
· Child benefit needs to be being claimed by the Mother of the child (If for example it has been switched off due to the Mum being affected by “the child benefit tax trap” there is no NI credit available to be transferred). See our further guide here: https://financialfortress.co.uk/child-benefit-tax-trap/.
· Both parents are working and paying sufficient national insurance themselves (so don’t need the NI credit on their record).
· “The credit” can’t be applied for until atleast the October following the end of the tax year (for example October 2025 for the tax year before, ie: 2024/25).
How to claim?
You need to fill out form CA9176 which is available using this link: https://www.gov.uk/guidance/apply-for-specified-adult-childcare-credits
You can complete this electronically or send it in the post. Importantly, you will need the parent of the child you have cared for to sign the form. If you get stuck, the national insurance helpline can be contacted on 0300 200 3500.
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