How the charge works
The HICBC claws back Child Benefit through the tax system when income is high. The key points:
- It applies if you or your partner has an adjusted net income over £60,000 (the threshold since 6 April 2024).
- It’s based on the higher earner’s individual income — not your combined household income. (So a couple each earning £55,000 pays nothing, but a single earner on £65,000 does.)
- You repay 1% of the Child Benefit for every £200 of income above £60,000.
- Once income reaches £80,000, the charge equals 100% of the Child Benefit — it all comes back.
| Higher earner’s income | Charge (% of Child Benefit) |
|---|
| Up to £60,000 | No charge |
| £65,000 | 25% |
| £70,000 | 50% |
| £75,000 | 75% |
| £80,000 or more | 100% (the whole amount) |
“Adjusted net income” is your total taxable income minus things like personal pension contributions and Gift Aid — which is exactly why those can reduce the charge (see below).
Why you should still claim
Even if you’ll have to pay it all back, claiming Child Benefit matters:
- It gives the parent who claims National Insurance credits towards their State Pension — crucial if one parent isn’t working or earns little (each year missed can cost State Pension later).
- Your child automatically gets a National Insurance number at 16.
Over £80,000 and don’t want the hassle?
You can claim Child Benefit but choose not to receive the payments. You keep the National Insurance credits and the child’s NI number, with no charge to pay and no tax return needed for it. If your income later drops below £80,000, you can simply restart the payments.
How to pay the charge
If you receive the payments and have to pay the charge, there are now two routes:
- Self Assessment — the traditional way: register, file a return, and the charge is calculated and collected. (See our Self Assessment guide.)
- Through your PAYE tax code (new from October 2025) — if you have employment or pension income, you can tell HMRC online (on GOV.UK or via the HMRC app) that you want the charge collected through your tax code, so you don’t have to file a tax return just for the HICBC.
Whichever route, keep a record of the Child Benefit you received in the tax year — that’s the figure the charge is based on.
How to legally reduce it
Because the charge is based on adjusted net income, you can reduce it by reducing that figure — completely legitimately:
- Pension contributions — paying more into a personal or workplace pension reduces your adjusted net income pound for pound, and can bring you back under £60,000 (removing the charge) or under £80,000 (reducing it).
- Gift Aid donations — also reduce adjusted net income.
- Salary sacrifice arrangements (e.g. pension, cycle-to-work) lower the taxable salary your employer reports.
Check the numbers before the tax year ends (5 April) — a contribution that just clears the £60,000 line can be worth far more than its cost once the kept Child Benefit and pension tax relief are added up. This isn’t avoidance — it’s using the rules as designed; for tailored advice see a regulated adviser or MoneyHelper.
Do this now
- Work out the higher earner’s adjusted net income — over £60,000 means the charge applies.
- Make sure you’ve claimed Child Benefit (for the NI credits) — opt out of payments if you’re over £80,000 and don’t want the charge.
- Pick your payment route — Self Assessment or the new PAYE tax-code option — and consider a pension top-up to cut the charge before 5 April.
Free help: GOV.UK Child Benefit tax charge pages · MoneyHelper · TaxAid. This is general information, not financial or tax advice.
Source verification
Primary sources: GOV.UK (High Income Child Benefit Charge overview + pay through PAYE), the Low Incomes Tax Reform Group (LITRG) and MoneyHelper. Last verified 20 June 2026. Confidence: High — the threshold is £60,000 (since 6 April 2024), the charge is 1% of Child Benefit per £200 of adjusted net income above it and 100% at £80,000, it’s based on the higher earner’s individual income, you can claim but opt out of payments to keep the NI credits, and from October 2025 the charge can be collected through a PAYE tax code instead of Self Assessment. Pension contributions and Gift Aid reduce adjusted net income. SortedUK is independent — not a government service, an accountant or a regulated adviser, and this is general information, not tax or financial advice.
HICBC — common questions
Is it based on my salary or the household’s?
The individual higher earner’s adjusted net income — not the household total. Two partners each on £55,000 pay nothing; one earner on £65,000 pays the charge. The government has consulted on a household basis but the individual basis still applies.
I forgot to register and now owe several years — what do I do?
Contact HMRC as soon as possible. They can be reasonable where it was a genuine misunderstanding, and penalties can sometimes be reduced. Get free help from TaxAid or a tax adviser, and see our Self Assessment guide.
Should a higher earner just not claim at all?
Better to claim and opt out of the payments — that way the non-working partner still builds State Pension via NI credits and the child gets an NI number, with no charge to pay. Not claiming at all loses those benefits.
Can pension contributions really remove the charge?
Yes. Personal pension contributions reduce your adjusted net income, so a contribution that takes you under £60,000 removes the charge entirely — and you get pension tax relief on top. Run the numbers before 5 April.
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