High Income Child Benefit Charge Explained

Child Benefit is a government payment made to households responsible for a child under 16 (or under 20 if in approved education or training). For the 2025/26 tax year, Child Benefit is:

• £25.60 per week for the first or only child (approximately £1,331 per year)
• £16.95 per week for each additional child (approximately £881 per year)

The High Income Child Benefit Charge is a tax mechanism that requires higher-earning households to repay some or all of the Child Benefit they have received. It is paid through a Self Assessment tax return by the individual in the household with the higher adjusted net income.

The charge was introduced in 2013 and has been adjusted several times since. The most significant recent change came in April 2024, when the income thresholds were substantially raised.

The HICBC is calculated as a percentage of the Child Benefit received:

• No charge if the higher earner's adjusted net income is below £60,000
• 1% of Child Benefit received per £200 of income above £60,000
• 100% of Child Benefit received must be repaid once income reaches £80,000

The HICBC applies if:

• Your household receives Child Benefit, and
• Either you or your partner has an adjusted net income above £60,000

Critically, it is the individual income of the higher earner — not combined household income — that determines whether the charge applies.

This means two earners each on £59,000 (combined £118,000) would not be subject to the charge, while a household where one person earns £65,000 and the other earns nothing would be.

If the lower earner is the one who claims Child Benefit, the charge is still paid by the higher earner through their own Self Assessment return. This can create an administrative obligation for someone who did not personally claim the benefit.

Our article on Adjusted Net Income Explained (UK) covers what counts as adjusted net income and how it is calculated.

Prior to 6 April 2024, the HICBC began to apply once either partner's income exceeded £50,000, and the full benefit was clawed back at £60,000.

From April 2024, the government raised the thresholds as follows:

Anyone whose income was between £50,000 and £60,000 prior to April 2024 who had opted out of receiving Child Benefit may now be eligible to opt back in. HMRC provides an online service to restart Child Benefit claims for those who opted out.

The HICBC is declared and paid through Self Assessment. If the higher earner has an adjusted net income above £60,000 and the household has received Child Benefit during the tax year, the higher earner must:

• Register for Self Assessment if not already registered
• Complete a Self Assessment tax return for the relevant tax year
• Declare the amount of Child Benefit received by the household
• Pay the High Income Child Benefit Charge as calculated

Some households choose to opt out of receiving Child Benefit entirely to avoid the Self Assessment obligation. However, this approach carries risks. The lower earner in the household may lose valuable National Insurance credits that count towards the State Pension — even if Child Benefit payments are waived, maintaining a claim (and paying the charge via Self Assessment) preserves those credits.

MoneyHelper — the government-backed financial guidance service — provides further guidance on the High Income Child Benefit Charge, Self Assessment and the implications of opting out.

Because the HICBC is based on adjusted net income rather than gross salary, actions that reduce adjusted net income can also reduce how much of the charge applies.

Personal pension contributions and contributions to a SIPP are deducted from adjusted net income. This means that making additional pension contributions could lower adjusted net income below the £60,000 threshold — or reduce the proportion of Child Benefit clawed back.

The interaction between pension contributions and adjusted net income is explored in more detail in our article on How to Reduce Your Income Tax Legally in the UK. Salary sacrifice pension arrangements may have a similar effect, as covered in our Salary Sacrifice Explained article.

A regulated financial adviser can model how pension contributions interact with the HICBC in your specific circumstances and help determine whether any planning may be appropriate.