High Income Child Benefit Charge (HICBC)
Child Benefit itself is not means-tested at the point of claim, but the tax system claws money back from higher-income households through the High Income Child Benefit Charge. For tax years from 2024/25 onwards — including 2026/27 — the charge starts when the higher-earning partner’s adjusted net income exceeds £60,000. You repay 1% of the Child Benefit for every £200 of income over £60,000. At £80,000 the charge equals the full benefit for the year.
Who pays
If both partners are over the threshold, the partner with the higher adjusted net income is responsible. “Partner” includes spouses, civil partners and people living together as if married. The charge can also arise where someone else claims benefit for a child living with you in specific contribution situations — read GOV.UK if your household is non-standard.
Keep claiming or opt out?
You can receive Child Benefit and pay HICBC through Self Assessment or PAYE, or opt out of payments while remaining registered. Staying registered can still protect National Insurance credits and make it easier to obtain a National Insurance number for a child later. The financially better choice depends on whether any charge would exceed the benefit and whether credits matter to you.
Rates used in this calculator
We model weekly Child Benefit at £27.05 for the eldest or only child and £17.90 for each other child for 2026/27, based on published uprating. Multiply by the number of weeks you actually received benefit in the tax year if you started or stopped mid-year.
Interaction with pensions and the £100k trap
Adjusted net income is also the measure used for the Personal Allowance taper above £100,000. Pension contributions that reduce ANI can therefore help with HICBC and, separately, with the £100k trap — but annual allowance limits still apply. Model both before making large contributions.
Worked example
Sam has adjusted net income of £70,000 and two children, claiming a full year. Weekly benefit ≈ £27.05 + £17.90 = £44.95; annual ≈ £2,337. Income is £10,000 over £60,000 → 50% charge (because £10,000 / £200 = 50). Estimated HICBC ≈ £1,169.
What we do not model
Back-year charges under the old £50,000 regime, complex care arrangements, and interaction with tax credits or Universal Credit. Always verify weekly rates and your ANI definition on GOV.UK.
Adjusted net income in household planning
HICBC looks at individual adjusted net income, not combined household income. A couple on £55,000 each may owe nothing, while a couple on £75,000 and £20,000 may face a charge on the higher earner. That asymmetry drives many “should we equalise income” conversations, though employment contracts and shareholdings limit what you can legally move.
Interaction with Self Assessment
Many people first meet Self Assessment because of HICBC even though all their income is PAYE. You can sometimes arrange collection through a tax code instead, but deadlines and conditions apply. If you already file SA for another reason, you will usually deal with HICBC there.
Opting out without losing credits
Opting out of payments is not the same as ending your Child Benefit claim entitlement narrative for NI credits. Families who expect the charge to claw back 100% often opt out of payments to avoid cash going round in circles, while remaining registered. Re-check GOV.UK steps before you change a claim.
Mid-year income spikes
A single bonus can push ANI across £60,000 or £80,000. Because the charge uses annual ANI, timing of pension contributions before 5 April can matter. Model the contribution against annual allowance headroom and any employer scheme deadlines.
Multiple children and part-year claims
More children means a larger benefit pot and therefore a larger potential charge at each percentage point. If a child joined or left the claim mid-year, adjust the weeks slider. Do not annualise a partial claim as if it were 52 weeks unless it was.
Common misunderstandings
- “Child Benefit stopped automatically at £60k” — not how HICBC works; you may still receive payments and owe a charge.
- “We both earn £40k so we are fine” — correct if neither exceeds £60k ANI.
- “Salary sacrifice childcare vouchers always fix it” — depends on what still sits inside ANI; check current scheme rules.
Estimating weeks on claim
If you claimed for 20 weeks after a birth mid-year, set weeks to 20 rather than 52. Overstating weeks overstates both benefit and charge. Understating weeks understates the charge you may need to budget for.
Communicating with payroll
If you pay HICBC through a tax code, check your PAYE code after HMRC adjusts it. Unexpected underpayments can appear if income estimates were wrong. Keep Child Benefit payment statements alongside payslips.
Closing
Weekly rates and thresholds used here follow published 2026/27 figures available at build time. Verify on GOV.UK before filing.
Sources: High Income Child Benefit Charge; Child Benefit what you will get; Child Benefit rates tables.