Understanding the High Income Child Benefit Charge

Child Benefit is a tax-free benefit paid by HMRC to parents or guardians responsible for a child under 16 (or under 20 if they are in approved education or training). In 2025/26, it is worth £25.60 per week for the first child and £16.95 per week for each subsequent child. However, if either you or your partner has income above £60,000, you may have to repay some or all of the Child Benefit through the High Income Child Benefit Charge (HICBC).

The Threshold Change

Until April 2024, the HICBC applied when either partner earned over £50,000. The October 2024 Budget increased this threshold to £60,000 as a temporary measure (with the intention of eventually basing it on household income rather than individual income). From 6 April 2024, the taper begins at £60,000 and reaches full repayment at £80,000.

How the Charge Works

The HICBC claws back Child Benefit at a rate of 1% for every £200 of income between £60,000 and £80,000. So if the higher earner in the household has income of £70,000 (£10,000 above the threshold), the charge is 50% of the Child Benefit received. At £80,000 or above, 100% of Child Benefit is effectively repaid through the charge. The charge is calculated on the tax return of the higher-earning partner — it does not matter whose name the Child Benefit claim is in.

What Counts as Income?

The charge is based on Adjusted Net Income — your total income less pension contributions and Gift Aid donations. Making pension contributions or Gift Aid donations to bring Adjusted Net Income below £60,000 removes the charge entirely, or reduces it if income is between £60,000 and £80,000. This is one of the most powerful practical tax planning points for families in this income range.

Reporting and Payment

If either you or your partner has income above £60,000 and Child Benefit is being claimed in your household, the higher earner must register for Self-Assessment and report the HICBC each year. Many people miss this — HMRC has been actively identifying non-compliance and issuing assessments for historic years. If you were previously below the £50,000 threshold but are now above £60,000, review whether you need to register.

Opting Out of Child Benefit

You can choose not to receive Child Benefit payments while still registering the claim. Registering preserves your child's National Insurance credit record and your entitlement to NI credits, even without receiving payments. If you opt back in later (because your income falls), you can do so easily. Registering and not receiving is often the sensible choice for higher earners who would simply repay the full amount through the charge.