The High Income Child Benefit Charge (HICBC) is a tax charge that claws back some or all of your Child Benefit once one partner's adjusted net income passes £60,000. HMRC collects it through Self Assessment. It rises gradually and wipes out the benefit entirely at £80,000.
It's one of the most misunderstood parts of the UK tax system. Plenty of families get caught out, land an unexpected tax bill, and never realise there were simple ways to soften the blow. This guide walks through the thresholds, the maths, and the planning moves that actually help.
What is the High Income Child Benefit Charge?
The HICBC applies when you or your partner receive Child Benefit and at least one of you has an adjusted net income above £60,000. It's charged on the higher earner, even if that person isn't the one claiming. The charge effectively reduces the value of the Child Benefit you keep.
Crucially, it's based on individual income, not household income. Two parents earning £55,000 each (£110,000 between them) pay nothing. A single parent on £62,000 does. It feels unfair to many, but that's how the rules currently work.
The 2026/27 thresholds
Since April 2024 the charge starts at £60,000 of adjusted net income and reaches 100% at £80,000. Both figures are frozen and still apply in the 2026/27 tax year. Before April 2024 the range was £50,000 to £60,000, so anyone relying on old advice may be working from the wrong numbers.
- Below £60,000 — no charge. You keep all your Child Benefit.
- £60,000 to £80,000 — a partial charge that tapers upward.
- £80,000 and above — the charge equals 100% of the Child Benefit received.
How the taper works
The charge is 1% of your Child Benefit for every £200 of income over £60,000. So £200 over costs you 1%, £2,000 over costs 10%, and £20,000 over (i.e. £80,000) costs the full 100%. It's a smooth slope, not a cliff edge.
Say you receive £2,337.40 a year in Child Benefit for two children — the 2026/27 rates of £27.05 a week for your eldest and £17.90 for the second — and your adjusted net income is £70,000. You're £10,000 over the threshold, which is 50 lots of £200, so the charge is 50%. That's roughly £1,169 to repay through your tax return.
Our Child Benefit tax calculator does this arithmetic for you in seconds, including multiple children and pension adjustments.
Should you keep claiming or opt out?
Even if you'll repay every penny, there are strong reasons to stay registered. Opting out of the payments while keeping the claim active is often the smartest middle ground. You can toggle payments off without cancelling the claim entirely.
If your income sits between £60,000 and £80,000, you keep part of the benefit, so continuing to receive payments usually makes sense. If it's comfortably above £80,000, some families prefer to stop the payments and avoid a Self Assessment bill. Either way, don't simply cancel the claim.
The National Insurance credit reason to register anyway
This is the part people miss. Claiming Child Benefit gives the claiming parent National Insurance credits until the child turns 12. Those credits count towards the State Pension for anyone not otherwise building a full NI record.
A parent who stays home or works part-time can quietly lose years of State Pension entitlement by never claiming. So register the claim, tick the box to receive no payments if you prefer, and protect the credits. HMRC's own guidance confirms you can claim purely for the NI credit.
According to HMRC's Child Benefit statistics, around 683,000 families had opted out of receiving payments as of August 2023 — many to sidestep the charge while keeping the underlying claim. Registering without payment is a well-trodden path.
How the charge is collected
The default route is Self Assessment. If you're liable, you must register for a tax return, declare the Child Benefit received, and pay the charge by 31 January after the tax year ends. Miss the registration deadline and penalties can follow.
There's now a simpler option too. HMRC has been rolling out a way to pay the charge through your PAYE tax code, so employed people can settle it without filing a full return. If you're newly caught by the charge, check whether this applies before assuming you must register for Self Assessment.
Planning tips to reduce the charge
The single most effective lever is your adjusted net income, because that's the figure the charge is based on — not your gross salary. Anything that legitimately lowers adjusted net income shrinks the charge, and can even remove it.
- Pension contributions — personal pension payments are deducted when working out adjusted net income. A £4,000 contribution drops a £64,000 earner to £60,000 and can erase the charge entirely.
- Gift Aid donations — charitable giving under Gift Aid also reduces adjusted net income.
- Salary sacrifice — sacrificing salary into a workplace pension or cycle scheme lowers taxable pay before it ever hits your income figure.
- Timing bonuses — where you have any control, spreading income across tax years can keep you under a threshold.
The pension move is doubly useful. You cut the Child Benefit charge and get tax relief on the contribution, so it's rarely money wasted. Run your numbers before the tax year ends, not after.
Common mistakes to avoid
Don't assume you're safe just because you don't feel wealthy — £60,000 catches a lot of ordinary households now. Don't cancel a claim when you only meant to stop payments. And don't ignore a letter from HMRC about the charge; unpaid HICBC accrues interest and penalties.
Check your position each year, especially after a pay rise, a bonus, or a change in your partner's earnings. A few minutes with our Child Benefit tax calculator tells you exactly where you stand and how much a pension top-up would save.
This article is general information for the 2026/27 tax year and not personal tax advice. Check GOV.UK or speak to a qualified adviser for your own circumstances.