Round Up Spring 2019

technical matters

Couples who have only one person in work need to ensure that the right one registers for Child Benefit in order to make sure National Insurance (NI) credits are awarded. Normally, a parent or carer of a child under 12 automatically gets Class 3 NI credits if they claim Child Benefit (whether or not they actually choose to receive the Child Benefit payments). However, if the Child Benefit is claimed by the working parent (who will usually already be paying NI), the non-working parent does not receive any NI credits and may therefore lose entitlement to future State Pension. NI credits can be transferred between parents of children under the age of 12 using HMRC form CF411A, but usually only for a single tax year. However, if the time limit has passed, the application form should still be completed giving the reason why the person didn’t apply on time. If the circumstances are reasonable, HMRC can still award the credits, as long as the person meets the transfer conditions. Loss of NI credits for those receiving Child Benefit

Increase of minimum auto enrolment contributions

On 6 April 2019, the minimum amount that will need to be paid into a workplace pension will increase to an overall minimum of 8% of qualifying earnings, with employers contributing at least 3% of this. The Pensions Regulator (TPR) is contacting all employers to remind them of their duties. The TPR website provides further information on the increases. Employers are able to write to their staff using the template provided on the TPR website should they wish. They should also check with their payroll software provider and pension provider to ensure plans are in place ahead of 6 April 2019.

Changes to benefits for mixed age couples The government has announced that it will be introducing changes to benefits for mixed age couples from 15 May 2019. When single people reach State Pension age, they move from working age benefits to pension age benefits. At the moment, couples can choose to make that transition when the older partner of the couple reaches State Pension age. In 2012, Parliament voted to modernise the system and change the rule for couples so that the transition takes place when the younger partner reaches State Pension age. This will ensure the younger partner is in the same circumstances as other people of the same age, regardless of the age of their partner. The government has now announced that the change will be introduced from 15 May 2019. Mixed age couples with a partner under State Pension age already in receipt of Pension Credit, or pension-age Housing Benefit, at the point of change will be unaffected while they remain entitled to either benefit.

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