How Does the Child Benefit Tax Charge Work?

Q: When does the Child Benefit tax charge apply?

The High Income Child Benefit Tax Charge (HICBC) applies when either partner in a household has adjusted net income above £60,000. The charge tapers in at 1% of Child Benefit for every £200 of income above £60,000, reaching 100% repayment at £80,000. Below £60,000 you keep Child Benefit in full with no charge.

Q: How do I pay the High Income Child Benefit charge?

There are two ways to pay: through PAYE, where HMRC adjusts your tax code, or through Self Assessment. You must use Self Assessment if you need to send a tax return for another reason (for example because you are self-employed) or if it is later than 31 January after the tax year you are paying for.

Q: Should I stop claiming Child Benefit?

You can opt out of receiving Child Benefit payments, and then you do not pay the charge. This can make sense if your income is well above £80,000. However, claiming Child Benefit (even if you repay the full amount via the charge) still counts towards your National Insurance record, protecting your State Pension entitlement. This matters especially if one parent is not working.

The High Income Child Benefit Tax Charge (HICBC) claws back Child Benefit when either partner earns above £60,000. Updated thresholds in 2024 mean fewer families are affected, but the charge still catches many households by surprise.

HICBC taper: 0% charge below £60,000, rising to full repayment at £80,000.

Child Benefit Rates 2026-27

Child Benefit is a weekly payment from HMRC for families with children under 16 (or under 20 in approved education or training):

Child	Weekly Rate	Annual Total
First or only child	£27.05	£1,406.60
Each additional child	£17.90	£930.80

In 2026-27 a family with two children receives £27.05 + £17.90 = £44.95/week, or £2,337.40/year in total.

What Is the High Income Child Benefit Tax Charge?

The HICBC is a tax charge that claws back Child Benefit when either partner in a household has adjusted net income above £60,000. Adjusted net income is your total income (salary, self-employment profit, rental income, dividends, savings interest) minus any personal pension contributions and Gift Aid donations.

The charge rate is 1% of Child Benefit received for every £200 of income above £60,000. This means:

At £60,000, no charge (0%)
At £70,000, charge of 50% of Child Benefit received
At £80,000 or above, charge of 100% (full repayment)

Worked Example: £70,000 Earner with Two Children (2026-27)

Annual Child Benefit: £27.05 × 52 + £17.90 × 52 = £1,406.60 + £930.80 = £2,337.40

Income above threshold: £70,000 − £60,000 = £10,000

Charge rate: £10,000 ÷ £200 × 1% = 50%

Tax charge: 50% × £2,337.40 = £1,168.70 owed (paid through PAYE or Self Assessment)

The family receives £2,337.40 in Child Benefit but must repay £1,168.70 in tax, keeping a net benefit of £1,168.70.

The 2024 Threshold Change

Prior to April 2024, the HICBC taper began at £50,000 and reached 100% at just £60,000, meaning Child Benefit was fully withdrawn over a much narrower £10,000 band, creating an effective marginal tax rate above 60% for some earners. The government raised the threshold to £60,000 and widened the taper to £80,000 from 6 April 2024, which, according to the Spring Budget 2024, took 170,000 families out of paying the charge.

How the Charge Is Paid

GOV.UK gives two ways to pay the HICBC:

Through PAYE: you register online, and HMRC sends a new tax code to you and your employer (or pension provider) so the charge is collected from your pay
Through Self Assessment: the charge goes on your tax return

You must use Self Assessment if you need to send a tax return for another reason (for example because you are self-employed or earn interest on savings or investments), or if it is later than 31 January after the tax year you are paying for. If you previously filed a return only to pay the charge, you can phone HMRC to leave Self Assessment and pay through PAYE instead.

Should You Opt Out of Child Benefit?

If your income is well above £80,000, you might consider opting out of receiving Child Benefit payments, in which case you do not pay the charge at all. However, you should still register for Child Benefit even if you opt out of payments, registration protects the non-earning parent's National Insurance record, which counts toward the State Pension. You can opt back in if circumstances change.

Reducing the Charge Legally

Because the HICBC is based on adjusted net income, pension contributions and Gift Aid donations reduce it. A taxpayer earning £70,000 who makes £10,000 of pension contributions drops their adjusted net income to £60,000, eliminating the charge entirely, and saving both the HICBC and the income tax on those contributions.

Frequently Asked Questions

When does the Child Benefit tax charge apply?

The HICBC applies when either partner in the household has adjusted net income above £60,000. The charge tapers from 0% at £60,000 to 100% repayment at £80,000. Below £60,000 you keep Child Benefit in full with no charge.

How do I pay the High Income Child Benefit charge?

Either through PAYE (HMRC adjusts your tax code) or through Self Assessment. Self Assessment is compulsory only if you need to send a tax return for another reason, or if it is later than 31 January after the tax year you are paying for.

Should I stop claiming Child Benefit?

You can opt out of payments so that no charge is due, but you should still register for Child Benefit to protect NI credits for the State Pension, especially important for a non-working parent. You can opt back in at any time.