The High Income Child Benefit Charge (HICBC) requires higher earners to repay some or all of the Child Benefit their household receives. From April 2024, the threshold rose from £50,000 to £60,000. If either you or your partner’s adjusted net income exceeds £60,000, you begin repaying Child Benefit at a rate of 1% for every £200 earned above £60,000 — reaching full repayment at £80,000.
Quick answer: If your income is between £60,000 and £80,000, you repay between 1% and 100% of Child Benefit. At £80,000 or above, you repay the entire amount. You must register for self-assessment to pay the HICBC if it applies to you.
Child Benefit Rates 2026/27
| Child | Weekly Rate | Annual Amount |
|---|---|---|
| Eldest or only child | £26.05 | £1,354.60 |
| Each additional child | £17.25 | £897.00 |
| Family with 2 children | — | £2,251.60 |
| Family with 3 children | — | £3,148.60 |
These are the 2025/26 rates; HMRC typically announces any increase in the autumn Budget for the following April.
HICBC Taper Table: How Much Do You Repay?
The charge is applied against the higher earner’s adjusted net income. Below is a quick-reference table for a family with one child (£1,354.60/year in Child Benefit):
| Higher Earner’s Income | % of Child Benefit Repaid | Annual Repayment | Net Child Benefit Kept |
|---|---|---|---|
| Under £60,000 | 0% | £0 | £1,354.60 |
| £62,000 | 10% | £135.46 | £1,219.14 |
| £65,000 | 25% | £338.65 | £1,015.95 |
| £70,000 | 50% | £677.30 | £677.30 |
| £75,000 | 75% | £1,015.95 | £338.65 |
| £80,000+ | 100% | £1,354.60 | £0 |
Formula: HICBC = Child Benefit received × [(income − £60,000) ÷ £20,000]
How to Calculate Your HICBC
Step 1: Identify the higher earner’s adjusted net income — your total income minus allowable pension contributions, Gift Aid donations (grossed up), and trading losses.
Step 2: Subtract £60,000 from the higher earner’s adjusted net income.
Step 3: Divide the excess by £200. This gives you the number of percentage points of Child Benefit to repay. Every £200 above £60,000 = 1% clawback.
Worked example: Sarah earns £72,000. Her household claims Child Benefit for two children (£2,251.60/year).
- Excess income: £72,000 − £60,000 = £12,000
- Charge percentage: £12,000 ÷ £200 = 60%
- HICBC: 60% × £2,251.60 = £1,350.96
- Net Child Benefit kept: £2,251.60 − £1,350.96 = £900.64
Sarah must pay £1,350.96 via self-assessment for the 2025/26 tax year.
Who Pays the HICBC?
The charge always falls on the higher earner in the household — regardless of who claims Child Benefit. This applies to:
- Married couples — the higher earner pays, even if Child Benefit is claimed by the lower earner
- Unmarried partners living together — same rules apply
- Separated households — if parents live apart, the HICBC only applies if they are cohabiting. Two separate households each assess independently.
HMRC does not consider household income collectively — each individual’s income is assessed separately. If both partners earn £65,000 each, each may appear to qualify, but only the higher earner (or either, if equal) pays the charge.
Registering for Self-Assessment
If the HICBC applies to you and you do not already submit a self-assessment tax return, you must register with HMRC by 5 October following the tax year in which the charge arose.
To register: visit GOV.UK and use the HMRC online services. You will need your National Insurance number and details of your income and Child Benefit payments.
Penalty warning: Failing to register for self-assessment when you owe the HICBC can result in penalties from HMRC, including late filing and late payment charges.
4 Legal Ways to Reduce or Eliminate the HICBC
1. Make Additional Pension Contributions
Pension contributions (to a workplace pension or SIPP) reduce your adjusted net income. If your income is £72,000, contributing an extra £12,000 gross to a pension reduces your adjusted net income to £60,000 — eliminating the charge entirely.
This works for both employer salary sacrifice and personal pension contributions. Read our guide on pension annual allowance to check how much you can contribute.
2. Use Salary Sacrifice
If your employer offers salary sacrifice for pension, childcare vouchers, or cycle-to-work schemes, these reduce your gross employment income before it reaches your PAYE record — directly lowering your adjusted net income for HICBC purposes.
3. Make Gift Aid Donations
Charitable donations made under Gift Aid can be deducted from your adjusted net income. The donation is grossed up (a £800 cash donation = £1,000 grossed-up Gift Aid donation that reduces your net income). This is less impactful than pension contributions but can push you below a threshold.
4. Opt Out of Child Benefit Payments
You can choose to receive Child Benefit payments but opt out, meaning you still register (preserving National Insurance credits) but waive the actual payments. If you opt out of payments entirely, there is no HICBC to pay and no self-assessment needed for Child Benefit purposes.
Warning: Opting out means losing National Insurance credits. Each year of Child Benefit claims while your child is under 12 earns you NI credits that count toward your State Pension. If you give up these credits, you may need extra NI years to qualify for the full State Pension. Read our State Pension guide to assess the impact.
HICBC and the ISA vs SIPP Decision
High earners affected by the HICBC should consider whether to prioritise SIPP contributions (which reduce adjusted net income, cutting the HICBC) over ISA contributions (which do not reduce net income for HICBC purposes). In most cases, directing additional savings to a SIPP first to eliminate the HICBC charge delivers better value — especially for additional-rate taxpayers who also benefit from higher tax relief. See our ISA vs SIPP comparison for a full breakdown.
History of the HICBC Threshold
| Tax Year | HICBC Threshold | Full Clawback At |
|---|---|---|
| 2012/13 to 2023/24 | £50,000 | £60,000 |
| 2024/25 onwards | £60,000 | £80,000 |
The threshold was raised in April 2024 following widespread criticism that the original £50,000 limit had not risen with inflation since its introduction in 2013.
Related UK Tax and Benefits Resources
- Child Benefit guide (GOV.UK)
- Pension Annual Allowance 2026 — maximise pension contributions to reduce HICBC
- ISA vs SIPP comparison — choosing the right savings vehicle
- UK Income Tax Bands 2026
- UK Taxes Hub — all UK tax guides in one place
The HICBC is one of the most disliked taxes in the UK because it penalises families with a single higher earner differently from dual-income families. Understanding the taper, registering for self-assessment, and using pension contributions strategically can help you minimise the impact — or eliminate the charge entirely.
The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy