Quick Summary
- The charge applies if either partner has adjusted net income over £60,000.
- It claws back 1% of Child Benefit for every £200 of income over £60,000.
- At £80,000 or more, the charge equals all the Child Benefit received.
- The partner with the higher income pays it.
- Pension contributions and Gift Aid can reduce your income below the threshold.
Child Benefit is paid regardless of income, but if you or your partner earn above a certain level, some or all of it is taken back through the tax system. Many people only find out years later — with a bill and a penalty. Here's how the charge works.
Who has to pay?
The High Income Child Benefit Charge (HICBC) applies if you or your partner receive Child Benefit and either of you has adjusted net income over £60,000 in a tax year. "Partner" includes a spouse, civil partner or someone you live with as a couple. If both of you are over £60,000, the person with the higher income pays.
It doesn't matter who claims the Child Benefit — the higher earner is still responsible for the charge.
How much is the charge?
For every £200 of adjusted net income over £60,000, you repay 1% of the Child Benefit received. At £80,000, the charge is 100%.
Example
Your adjusted net income is £68,000 and your family received £2,200 of Child Benefit. You're £8,000 over the threshold: £8,000 ÷ £200 = 40%. The charge is 40% × £2,200 = £880.
What is adjusted net income?
It's your total taxable income — salary, self-employed profit, rental profit, dividends, savings interest — minus:
- Personal pension contributions (grossed up for basic rate tax relief)
- Gift Aid donations (grossed up)
- Certain trading losses
Workplace pension contributions taken through salary sacrifice or "net pay" arrangements already reduce your taxable pay.
How to reduce or avoid the charge
- Pension contributions: paying more into a pension can bring your adjusted net income below £60,000. In the £60,000–£80,000 band, the effective tax relief can be very high.
- Gift Aid: donations reduce adjusted net income in the same way.
- Salary sacrifice: exchanging salary for pension contributions or other benefits through your employer.
- For company directors: the mix and timing of salary and dividends can be planned.
Should I stop claiming Child Benefit?
If your income is well over £80,000, you can choose to stop receiving the payments to avoid the charge. But you should usually still claim and opt out of payments rather than not claim at all. A claim gives a non-working or low-earning parent National Insurance credits towards their State Pension, and makes sure your child gets a National Insurance number automatically.
How to pay the charge
Traditionally, you had to register for Self-Assessment and pay the charge through your tax return. Employed people can now report Child Benefit and pay the charge through their PAYE tax code using HMRC's online service, instead of filing a return. If you already file Self-Assessment — for example as a landlord or sole trader — include it on your return.
If you should have paid the charge in earlier years and didn't, tell HMRC as soon as possible. HMRC may waive penalties where people genuinely didn't know about the charge, but the tax itself is still due.
Frequently Asked Questions
What is the High Income Child Benefit Charge threshold?
The charge starts when the higher earner's adjusted net income is over £60,000, and the full amount of Child Benefit is clawed back at £80,000.
Who pays the High Income Child Benefit Charge?
The partner with the higher adjusted net income pays it, even if the other partner receives the Child Benefit.
Can pension contributions reduce the child benefit charge?
Yes. Personal pension contributions and Gift Aid donations reduce adjusted net income, which can lower or remove the charge.
Should I still claim Child Benefit if I earn over £80,000?
Usually you should still claim but opt out of payments. This protects National Insurance credits for a non-working parent and makes sure your child gets a National Insurance number.
Do I need to file a tax return for the child benefit charge?
Not always. Employed people can now pay the charge through their PAYE tax code using HMRC's online service. If you already file Self-Assessment, include it on your return.
Worried About the Child Benefit Charge?
We'll calculate the charge, check whether pension contributions could reduce it and sort out any past years with HMRC.
Sardar Muhammad, AAT
Sardar is the founder of LimeTree Accounting Solutions, an AAT-accredited practice in Govanhill, Glasgow. He works with sole traders, tradespeople, landlords and small limited companies across Glasgow and Clydebank.
This guide is general information based on UK and Scottish tax rules as at 13 October 2026. It is not personal advice. Rates and thresholds change, so speak to us about your own situation.