Quick answer
The High Income Child Benefit Charge applies if you or your partner have adjusted net income over £60,000 and receive Child Benefit. The charge is 1% of the benefit for every £200 over £60,000, reaching 100% at £80,000, and is paid through Self Assessment.
Updated October 2026 · Figures based on 2025/26 rates
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Who pays it
The partner with the higher income pays, whether or not they receive the Child Benefit themselves.
How the charge is calculated
For every £200 of adjusted net income above £60,000, you repay 1% of the Child Benefit received that year. At £80,000 the whole amount is repaid.
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Options
You can still claim Child Benefit and pay the charge, or opt out of receiving payments while keeping National Insurance credits by registering the claim.
Reducing the charge
Pension contributions and Gift Aid donations reduce adjusted net income and can lower or remove the charge.
How the charge is calculated
The High Income Child Benefit Charge (HICBC) applies where you or your partner receive Child Benefit and the higher earner has adjusted net income above £60,000. The charge is 1% of the Child Benefit received for every £200 of adjusted net income over £60,000. At £80,000 or more, the charge equals 100% of the Child Benefit, so the benefit is effectively fully clawed back. The charge is based on the individual with the higher income, not on household income, and it is collected through Self Assessment.
Adjusted net income is your total taxable income before the Personal Allowance, less certain deductions such as Gift Aid donations (grossed up) and pension contributions made to a relief-at-source scheme (grossed up). This is why pension and charity payments can reduce the charge.
A worked example
This is an illustrative example, not a real family. Alex has adjusted net income of £70,000 and his partner receives Child Benefit of £2,250 a year for two children. Figures are for illustration only, so check current Child Benefit rates.
| Step | Working | Result |
|---|---|---|
| Income over threshold | £70,000 – £60,000 | £10,000 |
| Percentage charge | £10,000 / £200 x 1% | 50% |
| HICBC | £2,250 x 50% | £1,125 |
Now suppose Alex makes a personal pension contribution of £3,200 net into a scheme that gives basic-rate relief at source. The gross payment is £3,200 / 0.8 = £4,000, which reduces adjusted net income to £66,000.
| Step | Working | Result |
|---|---|---|
| Income over threshold | £66,000 – £60,000 | £6,000 |
| Percentage charge | £6,000 / £200 x 1% | 30% |
| HICBC | £2,250 x 30% | £675 |
The charge falls from £1,125 to £675, a saving of £450, in addition to the higher-rate relief Alex may claim on the pension contribution through his return. Always check your own figures, because the effect depends on your circumstances and on the annual allowance of £60,000 for pension contributions.
Your choices: pay the charge or stop the benefit
You can keep claiming Child Benefit and pay the charge through Self Assessment, or you can opt out of receiving payments while still staying registered. Staying registered matters because the claim can protect National Insurance credits for a parent who is not working and can help with a child’s National Insurance number. If you choose to opt out, you can opt back in later. If you opted out and your income later falls, check the rules for restarting payments.
Common mistakes
- Not registering for Self Assessment when the charge applies, which can lead to penalties.
- Assuming the charge depends on combined household income.
- Ignoring a change in income part-way through the year that pushes you over £60,000.
- Stopping the claim altogether and losing National Insurance credits for a parent at home.
- Forgetting that salary sacrifice, pension payments and Gift Aid can alter adjusted net income.
A short checklist
- Estimate adjusted net income for the tax year.
- Compare it with £60,000 and £80,000.
- Decide whether to continue the claim, opt out or reduce income through pensions or Gift Aid.
- Register for Self Assessment if the charge applies and you are not already registered.
- Include the Child Benefit received and the charge on your return.
Related reading
See our guides to the 100k personal allowance trap, Gift Aid and higher-rate relief, pension tax relief and Self Assessment and how to reduce tax when earning over 100k. You may also want our service for company directors if part of your income is from a company.
SATR can calculate the charge and file your return online for a fixed fee from £199 + VAT, using qualified UK accountants.
This is general information, not personal tax advice.
Planning around the charge for a family
Because the charge looks at the higher earner only, the way income is split between partners can affect the result. Where one partner earns £75,000 and the other earns £20,000, the first partner is liable even though the couple might feel their household income is moderate. Income that genuinely belongs to the lower earner, for example their own earnings or savings in their own name, is already taxed on them. Do not move income artificially, since HMRC looks at real entitlement.
Timing also matters. If you receive a bonus that tips you above £60,000 for one year only, consider whether a pension contribution before 5 April is suitable. Benefits in kind and dividends count towards the total as well, so company directors in particular should look at the whole picture. If your income is going to stay above £80,000, the benefit is fully clawed back, and you may decide that opting out of payment is simpler, while keeping the claim registered for the credit and the child’s records.
When the charge applies, HMRC adjusts your tax code or asks for payment through the return, depending on how you report it. Make sure you know which route you are using, so there are no surprises in January.
Frequently asked questions
Do I need to file a return to pay it?
Yes, if you are not already in Self Assessment you must register and report the charge.
Can I opt out of payments but still claim?
Yes, you can claim Child Benefit to protect National Insurance credits while asking not to receive payment.
Is the charge based on household income?
No. It is based on the adjusted net income of the higher earner in the couple, not the combined total.
Can I reduce the charge by paying into a pension?
Pension contributions and Gift Aid donations can reduce adjusted net income, which may lower the charge. Check the limits for your own situation.
Do I have to file a return if I pay the charge?
Yes, if you are liable and not otherwise exempt, the charge is collected through Self Assessment, so you need to register and file.
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The bottom line
The High Income Child Benefit Charge claws back Child Benefit at 1% for every £200 of adjusted net income over £60,000, reaching 100% at £80,000. It is based on the higher earner’s income, not household income, and is collected through Self Assessment. Pension contributions and Gift Aid can reduce the charge, and you can opt out of payments while keeping the claim registered to protect National Insurance credits.
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