Some people on high incomes (over £60,000) see no point in claiming child benefit only to find it added back in their tax bill. So they cancel it and live happily ever after…Or do they? Is there a catch? Yes, there is. Take the situation of a married woman bringing up a family with no income source of her own and her husband is earning £100,000 a year. Obviously there is no point in claiming child benefit. But unless a claim is made on form CH2 (in which the claimant says he or she does not want to receive child benefit payments) there will be no NIC credit for the first 12 years of the child’s life and the wife’s ultimate pension entitlement will suffer. So… if you’re a married woman at home bringing up a family and with no earned income look up form CH2 on the internet and act accordingly. This will preserve or enhance your eventual state pension entitlement.
This may not affect you directly but someone in your family may be thankful for it.
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