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?
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.
Related Topics
-
HMRC and Companies House to scrap free filing services
From April 2026 companies won’t be able to file their tax returns and accounts using the HMRC and Companies House free-to-use service. What steps should companies take ahead of the deadline?
-
Annual accounting: how are interest and late payment penalties calculated?
If you use the annual accounting scheme, you will submit one return each year instead of four or twelve. What are the potential traps if you don’t meet the scheme conditions?
-
Is basis period reform really over and done with?
You heaved a sigh of relief after submitting your 2023/24 self-assessment tax return, especially as it meant the fiddly basis period calculations were behind you. But why might it be to your advantage to revisit them?