High Income Child Benefit Tax Charge Explained (2025-26)
The High Income Child Benefit Charge (HICBC) is a tax charge that claws back Child Benefit from households where one person earns above a threshold. The rules changed significantly in April 2024, and the 2025-26 thresholds remain at those updated levels.
How the HICBC works in 2025-26
If the higher earner in a household that claims Child Benefit has an adjusted net income above £60,000, a tax charge applies. The charge is 1% of the Child Benefit received for every £200 of income above £60,000. At £80,000 and above, the entire Child Benefit is clawed back — an effective 100% charge.
Taper in practice
| Income | % of Child Benefit repaid |
|---|---|
| £60,000 | 0% |
| £65,000 | 25% |
| £70,000 | 50% |
| £75,000 | 75% |
| £80,000+ | 100% |
Child Benefit rates 2025-26
- First child: £26.05 per week (£1,354.60/year)
- Each additional child: £17.25 per week (£897/year)
For a family with two children, annual Child Benefit is £2,251.60. At £80,000 income, the entire £2,251.60 is repaid through the charge.
Historical context: the old threshold was £50,000
Before April 2024, the HICBC began at £50,000 and was fully clawed back at £60,000. The government raised the threshold to £60,000–£80,000 following significant public criticism that the old threshold had not been uprated since 2013, dragging many more families into the charge due to wage growth and fiscal drag.
Should you still claim Child Benefit if you earn above £60,000?
Yes — you should almost always claim Child Benefit even if you expect to repay some or all of it. Claiming protects your National Insurance record (each year of Child Benefit claim counts toward your State Pension entitlement), and it ensures your child is registered for a National Insurance number automatically at age 16. You can opt out of receiving the payments while keeping the NI credit.
How to pay the charge
The HICBC is paid through Self Assessment. If you or your partner earn above £60,000 and one of you claims Child Benefit, the higher earner must register for Self Assessment and declare it each year. HMRC can issue penalties if the charge is not reported and paid.
Frequently asked questions
Does the charge apply per parent or per household?
It is assessed on the individual with the higher income, not household combined income. Two partners each earning £55,000 (household £110,000) are not subject to any HICBC. One partner earning £70,000 with the other earning nothing would be subject to a 50% charge.
What counts as 'adjusted net income'?
Your gross income minus pension contributions, Gift Aid donations, and trading losses. Making pension contributions is one of the most effective ways to bring your adjusted net income below £60,000 and reduce or eliminate the charge.