Child Benefit & Tax

Child Benefit is a tax-free monthly payment made to people who are responsible for bringing up a child. It is paid to the main carer regardless of their income. However, if the higher earner in the household has an adjusted net income over £60,000, the High Income Child Benefit Charge (HICBC) applies, clawing back some or all of the benefit. This guide covers Child Benefit rates, how the charge works, and how to decide whether to opt out.

Current Child Benefit Rates

For the 2026/27 tax year, Child Benefit is paid at the following weekly rates. £25.60 for the eldest or only child. £16.95 for each additional child. The payments are made every four weeks (13 times per year), so a family with two children receives £42.55 per week, which is £1,704.80 over 40 weeks or £2,212.60 over 52 weeks depending on the payment schedule. Child Benefit is not means-tested — you can claim it regardless of your income — but if your income exceeds £60,000, you may have to pay some or all of it back through the HICBC. If you are on a low income, Child Benefit can also entitle you to National Insurance credits that protect your State Pension record.

The High Income Child Benefit Charge

The HICBC is a tax charge that applies when the higher-earning partner's adjusted net income exceeds £60,000 per year. The charge is calculated at 1% of the total Child Benefit received for every £100 of income above £60,000. At £80,000 of income, the charge equals 100% of the Child Benefit, meaning the entire amount is clawed back. The charge is collected through Self Assessment. If you are the higher-earning partner and your spouse or civil partner receives Child Benefit, you are liable for the charge even if you never see the Child Benefit money. The charge is not optional — if your income exceeds £60,000, you must report it on your Self Assessment return and pay it.

Opting Out of Child Benefit

If your income exceeds £80,000, the HICBC wipes out the full value of Child Benefit. In this situation, many people choose to opt out of receiving the payments. You can opt out online or by contacting the Child Benefit Office. Even if you opt out, you should still fill in the Child Benefit claim form (form CH2) because it ensures your child receives their National Insurance number automatically at age 16 and you continue to get National Insurance credits. If your income is between £60,000 and £80,000, you receive a portion of the benefit — you may decide it is worth continuing to claim and paying the partial charge. There is no cost to opting out, and you can opt back in at any time (for example, if your income drops below £60,000).

How to Receive Child Benefit Without a Tax Charge

The only way to receive Child Benefit without triggering the HICBC is to ensure neither partner has adjusted net income over £60,000. If your income is close to the threshold, you can reduce your adjusted net income by making pension contributions (through a personal pension or salary sacrifice scheme), making Gift Aid donations to charity, or using certain tax reliefs such as trading loss relief. Adjusted net income is total taxable income minus certain deductions — it is not simply your gross salary. For example, if you earn £62,000 but pay £3,000 into a personal pension, your adjusted net income would be £59,000, and the HICBC would not apply. Check the HMRC guidance on adjusted net income if you are making these calculations.

Reporting the Charge on Self Assessment

If the HICBC applies, you must report it on your Self Assessment tax return. There is a specific section on the return for the charge. You will need to know the total Child Benefit received during the tax year (your spouse or partner can tell you this from their Child Benefit award notice). HMRC's online system calculates the charge automatically. The charge is added to your overall Self Assessment tax bill and must be paid by the 31 January deadline. If you do not normally file a Self Assessment return, you must register by 5 October following the end of the tax year. If you fail to report the charge, HMRC may charge penalties and interest on the unpaid amount.

Interaction with Universal Credit

Child Benefit is treated differently from Universal Credit. If you receive Universal Credit, your Child Benefit payments do not affect your Universal Credit award directly, but the HICBC still applies if your income exceeds £60,000. The HICBC is based on income, not on the amount of Universal Credit you receive. If you are on Universal Credit and your income exceeds £60,000, you should consider the combined impact of reduced Universal Credit (due to the taper rate) and the HICBC when deciding whether to opt out of Child Benefit.

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