If you or your partner earn more than £60,000 and someone in your household claims Child Benefit, a slice of that benefit gets clawed back through the tax system. That clawback is the High Income Child Benefit Charge, usually shortened to HICBC.
It's one of the most misunderstood charges in UK tax. People assume it's all-or-nothing, or that it only hits the parent whose name is on the claim. Neither is true.
This guide walks through exactly how the charge tapers between £60,000 and £80,000, whose income counts, how to work out your own number, and the newer option to settle it through your tax code instead of a Self Assessment return. It's written for higher earners, company directors and contractors who want a clear answer without the jargon.
What is the High Income Child Benefit Charge?
The High Income Child Benefit Charge is an income tax charge that recovers some or all of the Child Benefit a household receives, once an individual's income passes a set threshold.
The thresholds for 2026/27 are:
| What | Figure | What it means |
|---|---|---|
| Lower threshold | £60,000 | Below this, no charge applies |
| Upper threshold | £80,000 | At or above this, the charge equals 100% of the Child Benefit received |
| Taper rate | 1% for every £200 over £60,000 | How fast the charge ramps up between the two |
Source: HMRC, High Income Child Benefit Charge.
So between £60,000 and £80,000 the charge tapers smoothly. Below £60,000 there's nothing to pay. At £80,000 or more, the charge wipes out the full value of the Child Benefit. You still receive the money during the year, but you hand back an equal amount through your tax bill.
Child Benefit itself is paid weekly. For 2026/27 the rates are £27.05 a week for the eldest or only child and £17.90 a week for each additional child (HMRC, Child Benefit rates).
Who actually pays the charge?
This is where most people trip up. The charge isn't paid by whoever's name is on the Child Benefit claim. It's paid by the higher earner in the household, whether or not they're the one claiming.
The rule works like this:
- If only one of you has income over £60,000, that person pays the charge.
- If you both have income over £60,000, the one with the higher income pays.
- It applies if you're married, in a civil partnership, or living together as a couple.
So a non-claiming partner can end up liable for a charge on Child Benefit they never personally received. In practice, this is the mistake we see most often: one partner quietly draws the benefit while the other crosses £60,000 and has no idea a charge is now due in their name.
Crucially, it's about individual income, not joint income. Two parents each earning £55,000 (a £110,000 household) pay nothing, because neither crosses £60,000. A single parent on £75,000 pays a substantial charge. The rule is widely seen as rough justice, but it's the law as it stands (HMRC).
How does the £60k-£80k taper work?
The charge is a percentage of the Child Benefit you (or your partner) received in the tax year. That percentage is set by how far your adjusted net income sits above £60,000.
The formula is 1% of the Child Benefit for every £200 of income over £60,000.
That gives you a clean way to read it off:
| Adjusted net income | Income over £60,000 | Charge as % of Child Benefit |
|---|---|---|
| £60,000 | £0 | 0% |
| £64,000 | £4,000 | 20% |
| £70,000 | £10,000 | 50% |
| £76,000 | £16,000 | 80% |
| £80,000+ | £20,000+ | 100% |
The maths behind each row is the income over £60,000, divided by £200. So £10,000 over the threshold is £10,000 / £200 = 50 increments, which is 50%. At £80,000 you've reached 100 increments, so the full benefit is clawed back. Above £80,000 the charge is capped at 100%, never more.
One practical detail: the charge only counts complete £200 steps. If you're £10,150 over the threshold, you still use 50 complete steps, not 50.75. Source: HMRC, High Income Child Benefit Charge.
What counts as adjusted net income?
The threshold isn't based on your salary. It's based on your adjusted net income, which is a specific HMRC measure.
Adjusted net income is your total taxable income before your personal allowance, then reduced by certain reliefs. In broad terms it includes:
- Salary, bonuses and most taxable benefits in kind
- Profits from self-employment
- Rental and other property income
- Savings interest and dividends
- Pension income
You then deduct things like the grossed-up amount of personal pension contributions and Gift Aid donations (HMRC, High Income Child Benefit Charge).
That last point matters a lot. Because pension contributions and Gift Aid come off your adjusted net income, they can pull you back under £60,000, or at least lower down the taper. We'll come back to that.
If your income is close to the line, it's worth getting the number right rather than guessing from your payslip. A quick way to sanity-check your taxable income and where you sit against the higher-rate bands is our income tax calculator.
Worked example: how much would you pay?
Illustrative example. Sam is a higher earner with two children. The household claims Child Benefit for both.
For 2026/27 the Child Benefit is £27.05 a week for the eldest child plus £17.90 for the second, which is £44.95 a week. Over a full 52-week year that's £2,337.40.
Sam's adjusted net income for the year is £70,000.
- Income over the £60,000 threshold: £70,000 - £60,000 = £10,000
- Number of complete £200 steps: £10,000 / £200 = 50
- Charge percentage: 50%
- HICBC: 50% of £2,337.40 = £1,168.70
So Sam keeps half the Child Benefit in real terms. The household receives £2,337.40 during the year, and Sam pays back £1,168.70 through the tax system.
Illustrative example, second scenario. Suppose Sam's income rose to £80,000 instead. Now the income over the threshold is £20,000, which is 100 complete £200 steps, so the charge is 100%. Sam would pay back the full £2,337.40, leaving the household no better off from claiming. At that point the only reasons to keep claiming are the National Insurance credits and the child's National Insurance number, which we cover below.
Figures used: Child Benefit rates and HICBC thresholds for 2026/27 per HMRC. Arithmetic is illustrative.
How do you pay the charge?
There are now two routes, and the second one is newer.
Self Assessment. The traditional route. You register for a Self Assessment tax return, report the Child Benefit received and your income, and HMRC calculates the charge. You must use Self Assessment if you already file a return for any other reason, for example as a company director, landlord or self-employed worker. If you need to register, our Self Assessment service can take it off your plate.
Through your PAYE tax code. Since the 2024/25 tax year, employed people who don't otherwise need to file a return can opt to pay the charge through PAYE instead. HMRC adjusts your tax code so the charge is collected gradually across your monthly pay, with no return to file. You apply through the online service on GOV.UK or the HMRC app (HMRC, pay the charge through PAYE).
You can only use the PAYE route if you don't need a Self Assessment return for any other reason, and you have to opt in on or before 31 January following the end of the tax year. For 2025/26 that deadline is 31 January 2027. Miss it, and you'll need to settle through Self Assessment instead.
Either way, the charge is your responsibility to report. HMRC won't always prompt you, and failing to notify a liability can lead to penalties on top of the charge.
Should you opt out of Child Benefit instead?
If your income is at or above £80,000 and likely to stay there, the charge claws back 100% of the benefit. So you can choose to stop the payments and avoid the admin of paying it back.
But think twice before opting out completely. Claiming Child Benefit, even at a zero payment rate, does two useful things:
- It can give the claiming parent National Insurance credits towards their State Pension, which matters if they're not working or earning below the threshold for NI contributions.
- It triggers a National Insurance number for the child automatically when they turn 16.
The usual practical answer is to make the claim but tick the box to not receive the payments. You get the credits and the NI number, and there's nothing to pay back. If your income later drops below £80,000, you can ask for payments to restart. See HMRC's guidance on the charge for the current rules.
How can you reduce the charge?
Because the charge is driven by adjusted net income, the same moves that reduce your income tax can also reduce or remove the HICBC.
The two most effective levers are pension contributions and Gift Aid, because both reduce your adjusted net income directly. If your income is, say, £68,000 and you make a personal pension contribution that brings your adjusted net income down to £60,000, you can take the charge to nil while also getting tax relief on the contribution. For higher earners that's often a double win.
For company directors and contractors, there's also the question of how you take income in the first place. The mix of salary, dividends and employer pension contributions affects your adjusted net income, and getting that mix right can keep you below or lower down the taper. This is where tailored advice earns its keep. If you run a limited company, our work for limited companies covers exactly this kind of planning, and our broader tax advisory service is built for it.
A quick word of caution: the goal is to manage genuine, sensible contributions, not to chase artificial structures. Done properly, it's straightforward planning.
Not sure whether the charge applies to you, or how to settle it without overpaying? Book a free 20-minute call with a Zmartly accountant and we'll work out your adjusted net income, your charge, and the cleanest way to handle it. Talk to a Zmartly accountant.
FAQs
Is the High Income Child Benefit Charge based on household income or individual income?
It's based on individual income, not household income. The charge applies to the higher earner in a couple once their adjusted net income passes £60,000. Two parents earning £55,000 each pay nothing, even though the household earns £110,000, because neither crosses the threshold.
At what income do you pay back all your Child Benefit?
At an adjusted net income of £80,000 or more, the charge equals 100% of the Child Benefit received for the 2026/27 tax year. Between £60,000 and £80,000 the charge tapers at 1% of the benefit for every £200 of income over £60,000.
Can I pay the charge through my tax code instead of doing a tax return?
Yes, for the 2024/25 tax year onwards, if you're employed and don't otherwise need to file a Self Assessment return. You opt in through the online service on GOV.UK or the HMRC app, on or before 31 January following the end of the tax year, and HMRC collects the charge through your PAYE tax code.
Does claiming Child Benefit if I earn over £80,000 still make sense?
It can. Even if you opt not to receive the payments, making the claim protects the claiming parent's National Insurance credits towards their State Pension and ensures the child gets a National Insurance number at 16. Many higher earners claim but choose not to be paid, so there's nothing to pay back.
Do pension contributions reduce the High Income Child Benefit Charge?
Yes. Personal pension contributions and Gift Aid donations reduce your adjusted net income, which is the figure the charge is based on. Bringing your adjusted net income below £60,000 removes the charge entirely, and any income still above £60,000 is taxed at a lower point on the taper.
