High Income Child Benefit Charge

The High Income Child Benefit Charge (HICBC) is a tax charge that applies to recipients of Child Benefit (or their partners) whose adjusted net income exceeds £60,000 per year. It claws back 1% of the Child Benefit received for every £100 of income above £60,000, meaning the benefit is fully withdrawn when income reaches £80,000. This guide explains how the charge works, how to report it, and the options available to you.

How the Charge Works

Child Benefit is paid to the person responsible for a child, regardless of their income. However, if either the claimant or their partner has adjusted net income over £60,000, the higher-earning individual must pay the HICBC. The charge is calculated as 1% of the total Child Benefit received for each £100 of income above £60,000. For example, if your income is £65,000, you lose 50% of your Child Benefit (because £65,000 minus £60,000 equals £5,000; £5,000 divided by £100 equals 50 percentage points). If your income is £80,000 or above, you lose the entire amount. Child Benefit rates for 2026/27 are £25.60 per week for the eldest or only child and £16.95 per week for each additional child. A family with two children receiving full child benefit would get £42.55 per week (£2,212.60 per year).

Who Pays the Charge

The charge is payable by the higher-earning partner, not necessarily the person who receives the Child Benefit payments. This is an important distinction: if you are the partner of someone who claims Child Benefit and your income exceeds £60,000, you are liable for the charge even though you do not personally receive the benefit. The charge is collected through Self Assessment. If you do not already file a Self Assessment return, you must register for Self Assessment to declare the charge. From April 2026, HMRC can also collect the charge through PAYE tax code adjustments if you are an employee or pensioner and do not file Self Assessment.

Opting Out of Child Benefit

If you or your partner has income over £60,000 and you do not want to pay the charge, you can opt out of receiving Child Benefit payments. This means you stop receiving the weekly payments, but you still need to complete the Child Benefit claim form to ensure your child receives their National Insurance number automatically at age 16 and you continue to get National Insurance credits towards your State Pension. Opting out can be done online or by contacting the Child Benefit Office. You can opt out at any time, but note that if your income later drops below £60,000, you can opt back in. There is no limit on opting in and out.

Interaction with Your Partner's Income

It is the higher of the two partners' incomes that determines whether the HICBC applies. You cannot use your partner's lower income to avoid the charge. If both partners have income over £60,000, the higher-earning partner is liable. If one partner earns £70,000 and the other earns £30,000, the HICBC applies based on the £70,000 income. Moving income between partners through salary sacrifice or dividend reallocation does not change the position — HMRC looks at each individual's adjusted net income separately. However, making pension contributions can reduce your adjusted net income and potentially bring you below the £60,000 threshold.

How to Report the Charge

If you or your partner receives Child Benefit and your income exceeds £60,000, you must report the charge on your Self Assessment tax return. There is a dedicated section in the return where you enter the total Child Benefit received in the tax year. HMRC's online system calculates the charge automatically based on your income. If you do not file a Self Assessment return, you must register by 5 October after the end of the tax year. The charge is added to your overall tax bill and is subject to the same payment deadlines as the rest of your Self Assessment liability.

Practical Example

Sarah earns £72,000 and receives Child Benefit of £25.60 per week for one child (£1,331.20 per year). Her income is £12,000 above the £60,000 threshold, so she loses 120% of the benefit — meaning the whole amount is clawed back. Sarah must pay £1,331.20 as the HICBC through her Self Assessment return. If Sarah earned £65,000 instead, she would lose 50% of the benefit: 50% of £1,331.20 is £665.60, so she keeps half the Child Benefit and pays the other half as tax.

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