If you or your partner earns more than £60,000 and you claim Child Benefit, the High Income Child Benefit Charge (HICBC) applies to you — and the rules have become both more generous and much easier to deal with. The income threshold sits at £60,000, the charge tapers gently up to £80,000, and since 2025 you can finally pay it through your PAYE tax code instead of filing a Self Assessment return just for this. This guide explains how the charge works in 2026/27, the current Child Benefit rates, worked examples, the legitimate ways to reduce it, and why you should usually claim Child Benefit even if you have to hand some of it back.
What is the High Income Child Benefit Charge?
The HICBC is a tax charge that claws back some or all of your Child Benefit once the higher earner in the household has an adjusted net income above £60,000. It is based on the individual’s income, not the household’s combined income — so a couple each earning £55,000 (£110,000 between them) pay nothing, while a single earner on £65,000 does. Many people consider this unfair, and the previous government had planned to move the test onto a household basis from April 2026. However, the current government confirmed at the Autumn Budget 2024 that it will not proceed with a household basis, citing the cost and complexity. So the individual test still applies in 2026/27, with no change scheduled.
You repay 1% of your Child Benefit for every £200 of income above £60,000. At £80,000 the charge equals 100% of the Child Benefit — so above that point there is no net cash benefit to receiving it (though, as we explain below, there can still be very good reasons to keep the underlying claim open). The thresholds (£60,000 and £80,000) are fixed figures set in legislation, not indexed to inflation, so more families are pulled into the charge each year as wages rise.
| Adjusted net income | Charge as % of Child Benefit |
|---|---|
| £60,000 or less | 0% — keep it all |
| £65,000 | 25% |
| £70,000 | 50% |
| £75,000 | 75% |
| £80,000 or more | 100% — fully clawed back |
Child Benefit rates for 2026/27
Child Benefit rose from 6 April 2026, in line with the September 2025 CPI inflation figure. The rates are uprated automatically each April, so they change every tax year. The current weekly and annual rates are:
| Child | Weekly rate | Annual (approx.) |
|---|---|---|
| Eldest or only child | £27.05 | £1,406.60 |
| Each additional child | £17.90 | £930.80 |
| Two children (total) | £44.95 | £2,337.40 |
| Three children (total) | £62.85 | £3,268.20 |
There is no limit on the number of children you can claim Child Benefit for — unlike the two-child limit that applies to some means-tested benefits. Always check the current figures on GOV.UK, as the rates above apply only to the 2026/27 tax year.
A worked example
Take a family with two children, claiming the full £2,337.40 a year. The higher earner has an adjusted net income of £70,000. That is £10,000 over the threshold, which is 50 lots of £200 — a 50% charge. So they repay roughly £1,168.70 through the charge and keep around £1,168.70. If the same earner were on £80,000 or more, the charge would be 100% and they would repay the full £2,337.40. Note that the charge is always rounded down to the nearest pound and capped at the amount of Child Benefit actually received, so it can never exceed what you were paid.
How to reduce your adjusted net income
Crucially, the charge is based on adjusted net income, not your gross salary — and adjusted net income is a figure you can legitimately lower. It is broadly your total taxable income (salary, bonuses, savings interest, dividends and benefits in kind), minus certain reliefs. The two biggest levers are:
- Pension contributions. Personal and salary-sacrifice pension contributions reduce adjusted net income, in most cases pound for pound. For someone just over £60,000, a one-off pension top-up before the tax year ends can bring income back under the threshold and remove the charge entirely — while also boosting retirement savings and attracting tax relief.
- Gift Aid donations. The gross amount of any Gift Aid charitable donations is also deducted when working out adjusted net income, so regular or one-off charitable giving can shave the figure down too.
Because of the 60%-plus effective tax rate created by the taper (you lose Child Benefit on top of income tax and National Insurance), these contributions can be unusually tax-efficient for parents in the £60,000–£80,000 band. This is general information, not personalised advice, so weigh any pension or giving decision against your wider finances and, ideally, check the sums with a qualified adviser. You can model your own figure using GOV.UK’s guidance on adjusted net income.
The big improvement: pay through PAYE
Historically, the most irritating part of the HICBC was being dragged into Self Assessment purely to pay it. From 2025, HMRC introduced a digital service that lets employed parents pay the charge through their PAYE tax code. If all your other income is already taxed under PAYE, you no longer need to file a tax return just for the charge — HMRC adjusts your code to collect it across the year. This removes a major bugbear and the risk of accidental non-compliance for thousands of families. You can register for and manage this on GOV.UK: High Income Child Benefit Charge.
If you are self-employed, have other untaxed income, or already complete a return for another reason, you will still report and pay the charge through Self Assessment as before. Keep records of the Child Benefit you received during the tax year, as you will need the exact figure.
Should you still claim if you earn over £80,000?
Often, yes — even if the charge wipes out the cash payment. There are two important reasons to make a claim:
- National Insurance credits. Claiming Child Benefit for a child under 12 gives the claiming parent NI credits that count toward their State Pension. This matters most for a parent who is not working or earns below the NI threshold — missing these credits can leave gaps in their record and reduce the State Pension they eventually receive.
- Your child’s National Insurance number. A Child Benefit claim means your child is automatically issued an NI number shortly before they turn 16, with no separate application needed.
The trick if you earn over £80,000 is to claim Child Benefit but opt not to receive the payments. You then keep the NI credits and the automatic NI number without triggering the charge or any need to report it. If your income later falls below £80,000, you can simply restart the payments. Make sure the claim is in the name of the parent who needs the NI credits, not the higher earner.
How to decide what to do
We based the guidance in this article on the current HMRC rules and the official Child Benefit rates for 2026/27. To work out the right approach for your household, run through these steps in order:
- Find your higher earner’s adjusted net income. Start with gross pay, add taxable benefits, then subtract pension contributions and Gift Aid. This is the number the charge keys off.
- If it is at or below £60,000: claim and receive Child Benefit as normal — there is no charge.
- If it is between £60,000 and £80,000: consider whether a pension or Gift Aid contribution can bring it down. If not, claim and receive the benefit, and pay the partial charge via PAYE or Self Assessment — you still keep most of it.
- If it is £80,000 or more: still make the claim, but opt out of payments so you keep the NI credits without the charge.
- Review each year. Bonuses, redundancy, parental leave or a pay rise can all move you across a threshold, so re-check your adjusted net income annually.
Frequently asked questions
At what income does the High Income Child Benefit Charge start?
It starts when the higher earner’s adjusted net income exceeds £60,000. The charge increases gradually — 1% of your Child Benefit for every £200 over the threshold — until income reaches £80,000, at which point it equals 100% of the Child Benefit received.
Is the charge based on household or individual income?
Individual income. It is based on the adjusted net income of the higher-earning partner, not combined household income. A proposed move to a household basis was confirmed at the Autumn Budget 2024 as not going ahead, so the individual test still applies in 2026/27.
Can I pay the charge without doing Self Assessment?
Yes. Since 2025, employed parents can pay the High Income Child Benefit Charge through their PAYE tax code using HMRC’s digital service, removing the need to file a Self Assessment return solely for the charge if all other income is taxed under PAYE.
How can I reduce or avoid the charge?
By lowering your adjusted net income. Pension contributions and Gift Aid donations both reduce that figure, so a top-up can cut the charge or remove it entirely if it brings your income back under £60,000. The reliefs are especially valuable in the £60,000–£80,000 band because of the high effective tax rate there.
Should I claim Child Benefit if I earn over £80,000?
Usually yes — make the claim but opt out of receiving payments. You keep the National Insurance credits that protect a non-working parent’s State Pension and ensure your child gets an NI number automatically, without triggering the charge.
Last reviewed: June 2026.
This guide is general information, not tax or financial advice, and reflects the rules and rates for 2026/27 as of June 2026. Check GOV.UK or speak to a qualified adviser for your own circumstances.