Farming families should ensure they are claiming National Insurance credits to avoid missing out on the new state pension, according to accountancy firm Old Mill.

The introduction of the new state pension, applicable to anyone under the state pension age on April 6, 2016, has seen the rules tighten.

Now, an individual is required to pay into the system for 35 years to receive a full state pension and ten years to receive any state pension at all.

Adam Sealey, accounts senior at Old Mill, believes there is now a very real risk that parents could lose out on the State Pension if they miss any NI payments.

Adam said: "For parents who are looking after a child under 12 NI credits are automatically linked to Child Benefit payments.

"However, for those who are subject to the high-income child benefit tax charge and have opted out of receiving child benefit payments, NI credits aren’t automatically applied.

“Nobody likes additional paperwork, however, given that each year of credit gained is worth over £230 per annum in state pension, it’s worth farming families reviewing their own situation and taking professional advice.”

Families can avoid a lowered state pension by completing a simple form on the government website, informing the tax office that the parent is entitled to receive child benefit but cannot due to the high income child benefit tax charge.

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For more information on Old Mill please visit oldmillgroup.co.uk