Since the High-Income Child Benefit Tax Charge was introduced in 2013, whereby families with a person earning over £50,000 are taxed on their Child Benefit, many mothers have chosen not to claim Child Benefit.
Under the current National Insurance system, a parent – usually a mother – receiving Child Benefit for a child under 12 receives a year of National Insurance credits towards her state pension record for each tax year in which that applies. So, even if not in paid work and paying no National Insurance contributions, her state pension entitlement is protected.
Families subject to the High-Income Child Benefit charge, whose first child was born since January 2013, have had a choice between either registering for Child Benefit and then opting out or not registering to begin with. The correct way to proceed is to complete the Child Benefit claim form and then opt out of receiving payments – this ensures NI credits are given correctly.
Follow the link below for more details.
https://www.gov.uk/child-benefit-tax-charge/overview