Child Benefit Calculator UK

The HICBC is a tax charge that claws back Child Benefit when either parent or their partner has adjusted net income above £60,000. You repay 1% of the benefit for every £200 of income above £60,000. At £80,000, you repay 100% of the benefit. The charge applies to the higher earner, regardless of who claims the benefit.

For 2024/25, Child Benefit is £25.60 per week for the eldest or only child, and £16.95 per week for each additional child. This works out to £1,331.20 per year for one child, £2,212.60 for two children, and £3,094.00 for three children. Rates are usually uprated each April.

Yes, in most cases. Even if the HICBC means you repay 100% of the benefit, claiming Child Benefit ensures the stay-at-home parent (or lower earner not working) receives National Insurance credits towards their State Pension. These NI credits are automatic when you claim Child Benefit for a child under 12.

The charge is 1% of the total Child Benefit received for every £200 of income above £60,000. For example, if you earn £70,000 (£10,000 over the threshold), you repay 50% of the benefit (10,000/200 = 50%). The charge is calculated on adjusted net income, which includes salary, bonuses, benefits in kind, and rental income, minus pension contributions and Gift Aid.

Yes. Pension contributions and Gift Aid donations reduce your adjusted net income. If your income is just above £60,000, increasing pension contributions could bring you below the threshold. For example, someone earning £65,000 who puts £5,000 into a pension (net of tax relief) would reduce their adjusted net income to £60,000 and avoid the HICBC entirely.

No. Only the income of the higher earner is relevant. Two parents each earning £59,000 (£118,000 combined) would pay no HICBC, while a household with one earner on £61,000 and a non-working partner would face the charge. This is a common criticism of the system.

You must register for Self Assessment and declare the Child Benefit received on your tax return. HMRC will calculate the charge and add it to your tax bill. If you choose not to receive the payments (opting out), you can still be registered for Child Benefit to get NI credits without having to repay via Self Assessment.

HMRC can go back up to 20 years to collect unpaid HICBC, plus interest and penalties. They cross-reference Child Benefit claims with tax return data. Many people have been caught out, especially when the charge was introduced in 2013. If you have not declared, contact HMRC voluntarily to minimise penalties.

The threshold increased from £50,000 to £60,000 on 6 April 2024, and the taper band was extended from £50,000-£60,000 to £60,000-£80,000. This means more families can keep some or all of their Child Benefit. Previously, someone earning £60,000 would repay 100%; now they pay nothing.

You can backdate a Child Benefit claim by up to 3 months. To claim, you need to fill in form CH2 (available on gov.uk) and provide your child's birth or adoption certificate. Claims are usually processed within 6-12 weeks. Payment is made every 4 weeks into a bank account.