Written and reviewed by James Whitfield · Updated for 2026/27 · Editorial standards · Methodology
If you or your partner earns over £60,000, the High Income Child Benefit Charge (HICBC) claws back child benefit through your tax return. This guide explains the threshold, the taper and how to manage it.
The High Income Child Benefit Charge claws back child benefit for earners above £60,000 through Self Assessment. Pension contributions reducing adjusted net income below £60,000 can eliminate the charge.
The High Income Child Benefit Charge (HICBC) is a tax that reduces and eventually eliminates the value of Child Benefit for families where the higher-earning partner has income above £60,000. It was introduced in 2013 and significantly reformed in April 2024 when the threshold was raised from £50,000 to £60,000.
Child Benefit is paid at £25.60/week for the first child and £16.95/week for each additional child in 2026/27. A family with two children receives approximately £2,212 per year in Child Benefit. The HICBC means that if either partner earns above £60,000, some or all of this benefit is recovered through a tax charge.
The charge is calculated at 1% of the Child Benefit received for every £200 of income above £60,000, up to a maximum charge of 100% at £80,000. This means between £60,000 and £80,000, the Child Benefit is progressively withdrawn. Above £80,000, claiming Child Benefit produces no financial benefit, the charge equals the full benefit amount.
The HICBC is not collected through PAYE. It is declared and paid via Self Assessment. Any higher-earning parent or their partner whose income exceeds £60,000 and who is in a household receiving Child Benefit must register for Self Assessment (if not already registered) and complete a tax return by 31 January following the end of the relevant tax year.
Failing to register and declare can result in HMRC issuing penalties. HMRC has historically been effective at identifying households where Child Benefit is being received alongside high-income taxpayers, using data matching between the Child Benefit Office and PAYE records. The penalties for non-declaration can exceed the original charge, so compliance is important.
An alternative is to elect to stop receiving Child Benefit payments entirely, which avoids the HICBC without needing a Self Assessment return. However, this is only advisable if the charge would have equalled the full benefit anyway (i.e. income above £80,000), as families can still build National Insurance credits through claiming Child Benefit even without receiving payments, which matters for the child parent's future State Pension entitlement.
The HICBC is calculated on 'adjusted net income', which is gross income minus pension contributions (whether salary sacrifice or personal pension payments). This means pension contributions can reduce your adjusted net income below the £60,000 threshold and eliminate or reduce the charge.
For an earner on £68,000 with a family receiving Child Benefit for two children (approximately £2,212/year), the HICBC would be (£68,000 minus £60,000) / £200 x 1% of £2,212 = 40% of £2,212 = £885. A pension salary sacrifice of £8,000 reduces adjusted net income to £60,000, eliminating the entire £885 charge. That pension contribution effectively has a financial return far above its cost.
This is one of the most powerful pension contribution incentives available to mid-income earners. At £75,000 with two children, a pension contribution that reduces adjusted net income to £60,000 saves the entire Child Benefit value plus provides higher-rate income tax relief and NI savings on the pension contribution itself.
Current tax-year thresholds used across this guide and calculator.
The HICBC applies when either partner in a household receiving Child Benefit has adjusted net income above £60,000. The charge increases by 1% of the benefit for every £200 of income above £60,000, reaching 100% at £80,000. Above £80,000, the full benefit is clawed back.
Yes. Pension salary sacrifice reduces adjusted net income. If a contribution brings adjusted net income below £60,000, the HICBC is eliminated entirely. At £68,000 with two children, a £8,000 pension contribution saves the entire Child Benefit of approximately £2,212/year in addition to providing higher-rate income tax relief.
Yes. The HICBC is not collected through PAYE. Any higher-earning partner whose income exceeds £60,000 and whose household receives Child Benefit must register for Self Assessment and complete a tax return. Failure to declare carries penalties that can exceed the original charge.
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