The High Income Child Benefit Charge Explained
Last updated 12 June 2026
The High Income Child Benefit Charge (HICBC) claws back Child Benefit when you or your partner has an adjusted net income over £60,000. You repay 1% of your Child Benefit for every £200 of income above £60,000, so at £80,000 or more the charge equals 100% of the benefit. The charge falls on the higher earner, regardless of who actually receives the payments. You can either keep the payments and pay the charge, or opt out of payments — but you should still register the claim to protect National Insurance credits towards your State Pension.
- The charge starts when adjusted net income exceeds £60,000 and removes 100% of Child Benefit at £80,000 or more (gov.uk).
- The taper is 1% of your Child Benefit for every £200 of adjusted net income over £60,000.
- Child Benefit is currently £27.05 a week for the eldest or only child and £17.90 a week for each additional child — £2,337.40 a year for two children.
- The threshold is per person, not per household: two parents each earning £59,000 pay nothing, while one parent on £61,000 triggers the charge.
- Whoever has the higher adjusted net income pays the charge, even if their partner receives the Child Benefit.
- Pension contributions and Gift Aid reduce adjusted net income, so they can shrink or eliminate the charge.
- Opting out of payments avoids the charge — but always submit the claim form anyway, because a registered claim earns National Insurance credits while your child is under 12.
What is the High Income Child Benefit Charge?
The HICBC is a tax charge that recovers some or all of a family's Child Benefit when the higher earner's adjusted net income exceeds £60,000. It is not a cut to Child Benefit itself — the payments continue in full — but the higher earner repays a percentage of them through the tax system. Anyone responsible for a child under 16 (or under 20 in approved education or training) can claim Child Benefit, so the charge potentially affects any household where one partner earns over £60,000.
What are the HICBC thresholds in 2026/27?
The charge begins at £60,000 of adjusted net income and reaches 100% at £80,000, per gov.uk guidance current as of June 2026. Between those figures, the charge tapers at 1% of your Child Benefit for every £200 of income over £60,000.
| Adjusted net income | Effect |
|---|---|
| £60,000 or below | No charge — you keep all your Child Benefit |
| £60,001 – £79,999 | Partial charge: 1% of Child Benefit per £200 over £60,000 |
| £80,000 or more | Charge equals 100% of Child Benefit received |
Note these are individual thresholds, not combined household income. A couple each earning £59,000 (£118,000 between them) pays no charge at all, while a single-earner household on £61,000 does — a long-standing quirk of the rules.
How much Child Benefit is at stake?
Child Benefit is currently worth £27.05 a week for your eldest or only child and £17.90 a week for each additional child (gov.uk, June 2026). Over a 52-week year that adds up quickly:
| Children | Weekly amount | Annual amount |
|---|---|---|
| 1 child | £27.05 | £1,406.60 |
| 2 children | £44.95 | £2,337.40 |
| 3 children | £62.85 | £3,268.20 |
How is the charge calculated?
Take your adjusted net income, subtract £60,000, and divide by £200 — that gives the percentage of your Child Benefit you must repay (rounded down). For example, gov.uk's own illustration shows that earning £7,600 over the threshold means repaying 38% of the benefit. Here is how the taper plays out for a family with two children (£2,337.40 of Child Benefit a year):
| Adjusted net income | Amount over £60,000 | Charge (% of benefit) | Charge with 2 children |
|---|---|---|---|
| £60,000 | £0 | 0% | £0 |
| £64,000 | £4,000 | 20% | £467 |
| £70,000 | £10,000 | 50% | £1,168 |
| £75,000 | £15,000 | 75% | £1,753 |
| £80,000+ | £20,000+ | 100% | £2,337 |
Charges rounded down to the nearest pound. One practical consequence: between £60,000 and £80,000, every extra £1 you earn costs roughly an extra 11.7p in HICBC for a two-child family — on top of 40% income tax. That pushes the effective marginal rate above 50% before National Insurance, which is why pension planning in this band matters so much (see our pension contributions and tax relief guide).
Who pays the charge?
The partner with the higher adjusted net income pays — full stop. It does not matter who actually claims or receives the Child Benefit. If your partner receives the payments but your income is higher and over £60,000, the charge lands on your tax bill. "Partner" here means a spouse, civil partner, or someone you live with as a couple — you do not need to be the child's parent to be caught.
What counts as adjusted net income?
Adjusted net income is your total taxable income before Personal Allowances, less certain reliefs. Per gov.uk it includes:
- Salary and employment benefits (such as a company car)
- Self-employment profits — estimate yours with our sole trader tax calculator
- Rental income
- Savings interest and dividends
Crucially, you then deduct pension contributions and Gift Aid donations. A parent earning £63,000 who pays £3,000 (gross) into a pension brings their adjusted net income down to £60,000 and wipes out the charge entirely — while also getting higher-rate tax relief on the contribution. For how the £60,000 figure interacts with the wider tax bands, see understanding UK tax bands.
Should you opt out of payments or pay the charge?
It depends on your income level. If the higher earner is consistently over £80,000, opting out of payments avoids the charge and the admin with no financial loss. If income sits between £60,000 and £80,000, keeping the payments is usually better — you keep the portion of the benefit the taper leaves behind. And if income hovers near the thresholds or fluctuates (common for the self-employed), keeping the payments preserves flexibility.
| Option | Best when | Watch out for |
|---|---|---|
| Keep payments, pay the charge | Income £60,000–£80,000, or variable income | You must declare and pay the charge — budget for the bill |
| Opt out of payments | Income reliably £80,000+ | Still submit the claim form to protect NI credits; restart payments if income falls |
Whatever you choose, register the Child Benefit claim. Gov.uk is explicit that if you choose not to receive payments you should still make a claim, because a registered claim gives the claimant National Insurance credits towards the State Pension automatically while the child is under 12 — vital for a parent who is not working or earning below the NI threshold.
How do you pay the charge?
HMRC offers two routes: through PAYE (collected via your tax code) or through Self Assessment. You must use Self Assessment if you are self-employed, if you have investment income to report, or if it is later than 31 January in the year after the tax year concerned. For the 2026/27 tax year, that Self Assessment deadline is 31 January 2028. If you have never filed before, you will need to register first — the charge is one of the most common reasons employees with no other untaxed income end up in Self Assessment. Our free tax calculators can help you estimate the rest of your bill alongside the charge.
Is the £60,000 threshold per person or per household?
Per person. The charge looks at each partner's individual adjusted net income, not the combined total. Two parents each earning £59,000 pay no charge, while a single-earner household on £61,000 does.
My partner receives the Child Benefit but I earn more — who pays?
You do. The charge always falls on the partner with the higher adjusted net income, regardless of whose bank account the Child Benefit is paid into.
Can pension contributions help me avoid the charge?
Yes. Pension contributions and Gift Aid donations are deducted when calculating adjusted net income. Contributing enough to bring your income to £60,000 or below removes the charge completely, and contributions in the £60,000–£80,000 band also attract higher-rate tax relief.
If I opt out of payments, do I lose State Pension credits?
No — provided you still register the claim. Submit the Child Benefit claim form and choose not to receive payments: the claimant then gets National Insurance credits automatically while the child is under 12, and there is no charge to pay because no benefit is received.
Do I have to fill in a Self Assessment return to pay the charge?
Not always. HMRC can collect the charge through PAYE via your tax code. However, you must use Self Assessment if you are self-employed, have investment income, or are declaring later than 31 January following the end of the tax year.
What happens if my income goes over £80,000?
The charge equals 100% of the Child Benefit received, so you repay it all. Most people in this position opt out of payments to avoid the paperwork — while keeping the claim registered for National Insurance credits.
Sources: High Income Child Benefit Charge (gov.uk) and Child Benefit (gov.uk), verified 12 June 2026. Estimates for information only — not regulated tax advice.