The High Income Child Benefit Charge (HICBC) is a tax charge that claws back Child Benefit when either parent in a household has individual income over £60,000. It was introduced in 2013 and the threshold was raised from £50,000 to £60,000 in April 2024.
How the Charge Works
If the higher earner in a couple (or a single parent) has adjusted net income between £60,000 and £80,000, a percentage of the Child Benefit received must be repaid. Above £80,000, the entire benefit is effectively clawed back.
The charge is calculated as:
- 1% of the Child Benefit for every £200 of income above £60,000
- At £80,000 (i.e., £20,000 above the threshold), the charge equals 100% of the benefit
Child Benefit Rates (2026/27)
| Child | Weekly Rate | Annual Amount |
|---|---|---|
| Eldest or only child | £27.05 | £1,406.60 |
| Each additional child | £17.90 | £930.80 |
A family with two children receives approximately £2,337.40 per year.
Example Calculation
If one parent earns £70,000 with two children:
- Income over £60,000 = £10,000
- £10,000 ÷ £200 = 50 → charge is 50% of Child Benefit
- 50% of £2,337.40 = £1,168.70 tax charge
The family still keeps roughly half the benefit.
It Is Based on Individual Income
A crucial detail: HICBC is based on the higher earner’s individual income, not combined household income. A couple each earning £59,000 (combined £118,000) pays no charge. A single earner on £65,000 does. This creates anomalies, but it is how the law works.
Should You Still Claim Child Benefit?
Even if the charge claws back 100% of the benefit, there are strong reasons to keep claiming:
- National Insurance credits: The parent who claims Child Benefit and is not working (or earning below the NI threshold) receives Class 3 National Insurance credits, protecting their State Pension entitlement
- National Insurance number for your child: Your child is automatically issued an NI number before they turn 16
- Circumstances change: If income drops below £60,000, the benefit flows automatically
You can opt to receive the payments or to not receive them while still being “registered” for the credits. If your household also receives means-tested support, note that HICBC sits outside the benefits system — see how earnings affect Universal Credit under the 2026 earnings taper.
How to Reduce Your Liability
The charge is based on adjusted net income, which can be reduced by:
- Pension contributions: Personal contributions reduce adjusted net income pound for pound
- Gift Aid donations: Grossed-up charitable donations also reduce the figure
- Salary sacrifice: Employer pension contributions via salary sacrifice are not counted as your income
Increasing pension contributions from £70,000 to bring adjusted net income below £60,000 would eliminate the charge entirely.
Reporting and Payment
There are two ways to pay HICBC. If you have no other reason to file a tax return, you can register to pay the charge through PAYE, and HMRC collects it through your tax code. You must use Self Assessment instead if you already need to send a return for another reason, or if you are paying later than 31 January in the year after the tax year concerned. Either way the charge has to be reported — not doing so can lead to penalties.