HMRC chief urges thousands to check NI record
In a recent statement HMRC’s chief executive has flagged a problem affecting the NI records of tens of thousands of taxpayers. The trouble concerns anyone entitled to child benefit between 1978 and 2000. What steps are needed to correct the problem?
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Government launches consultation package on HMRC powers and tax administration
The government has launched a wide-ranging package of consultations on tax administration, including proposals to strengthen HMRC's debt recovery powers, modernise tax agent regulation and expand the use of digital services. Several of the measures could have significant implications for taxpayers and advisers. What has been proposed?
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What are HMRC’s new procedures for export evidence?
HMRC has updated its guidance about the proof of export you must retain if you ship goods abroad and zero-rate the sales. How will the new guidance affect your business?
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Getting out of the child benefit tax trap
You expect to earn over £60,000 for this tax year which means you may have to pay back some or all of your family’s child benefit due to the high income child benefit charge (HICBC). Is it possible to reduce the charge?
Parents looking after children are entitled to adjustments to their NI record to ensure they don’t lose out on state pension entitlement. However, tens of thousands of people who claimed child benefit between 1978 and 2000 could be receiving too little in state pension because their NI records were not adjusted for home responsibilities protection (HRP). We initially reported this back in October 2024, but the scale of the problem appears to be greater than first thought. HRP reduced the number of qualifying years of NI contributions needed for the pre full basic state pension. While NI records were automatically adjusted between 6 April 1978 and 5 April 2010 (when HRP was replace by NI credits), prior to May 2000 many child benefit claimants didn’t provide their NI number meaning they may not have benefited from HRP. According to the government’s latest figures the average total loss to date of state pension for each person affected is over £7,850.
Those who claimed child benefit between 1978 and 2000 should check their NI records to see if they are eligible to make a claim for HRP. HMRC has also produced a short video about HRP on LinkedIn if you’re unsure as to what it relates to.
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