What is the High Income Child Benefit Charge?
Child Benefit is a payment made to people responsible for bringing up a child, but if you or your partner have relatively high income, some or all of it can be clawed back through a tax charge called the High Income Child Benefit Charge (HICBC). This often catches families by surprise, particularly when one partner receives a pay rise or bonus that pushes them over the threshold.
The thresholds and how the charge is calculated
The charge is based on adjusted net income — broadly, your total taxable income before Personal Allowance, minus things like pension contributions made from net pay and Gift Aid donations grossed up. For 2026/27, the rules work like this:
| Adjusted net income | Effect on Child Benefit |
|---|---|
| Up to £60,000 | No charge — full Child Benefit kept |
| £60,000 to £80,000 | Charge of 1% of Child Benefit for every £200 of income over £60,000 |
| £80,000 and above | Charge equals 100% of Child Benefit received (fully clawed back) |
Crucially, the charge is based on the income of the higher earner in the household individually, not combined household income. This means two parents each earning £55,000 (a household income of £110,000) pay no charge at all, while a single-earner household on £70,000 with a non-earning partner faces a substantial charge — a feature of the system that is often criticised as unfair but remains how it currently works.
Who has to pay it, and how
The charge applies to whichever partner in the household has the higher adjusted net income, regardless of who actually claims the Child Benefit. If that person's income is over £60,000, they need to register for Self Assessment (if not already registered) and declare the charge on their tax return, repaying some or all of the Child Benefit received during the year.
Your options if you're affected
Option 1: Keep claiming and pay the charge
You can continue to receive Child Benefit payments as normal and simply pay back the appropriate amount through Self Assessment each year. This suits people whose income fluctuates around the threshold, or who would rather receive the cash flow and settle up later.
Option 2: Opt out of payments, but still register
Alternatively, you can elect not to receive the Child Benefit payments at all, which avoids the charge altogether since there is nothing to claw back. Importantly, HMRC strongly recommends still completing the claim form even if you choose this option, rather than not claiming at all.
Why registering still matters even if you opt out of payments
This is one of the most commonly misunderstood parts of the system. Making a Child Benefit claim — even one where you elect to receive no payments — does two important things unrelated to the money itself. First, it triggers National Insurance credits for the claimant (usually the parent who isn't working, or works part-time), which count towards their State Pension entitlement. Missing these credits can leave gaps in a parent's NI record that are costly or impossible to fill in later. Second, it ensures the child is automatically issued a National Insurance number shortly before their 16th birthday. Families who decide not to claim Child Benefit at all because "we'd have to pay it back anyway" can unintentionally lose out on both of these benefits.
Reducing your adjusted net income
Because the charge is based on adjusted net income, increasing pension contributions or Gift Aid donations can genuinely reduce or eliminate the charge, as well as reducing your income tax bill. For someone whose income sits just above £60,000 or £80,000, an additional pension contribution can bring adjusted net income back under a threshold, avoiding the charge (or a slice of it) while simultaneously boosting retirement savings — often a highly efficient use of extra income for higher earners with children.
Key takeaways
- The High Income Child Benefit Charge applies once the higher earner in a household has adjusted net income over £60,000.
- The charge is 1% of Child Benefit for every £200 of income between £60,000 and £80,000, and 100% (full clawback) above £80,000.
- It's based on the higher individual earner's income, not combined household income — creating notable unfairness between dual and single-earner households.
- You can keep receiving payments and repay via Self Assessment, or opt out of payments to avoid the charge.
- Always still register for Child Benefit even if opting out of payments, to protect National Insurance credits and secure the child's NI number.
- Increasing pension contributions or Gift Aid can reduce adjusted net income and lessen or remove the charge.