High Income Child Benefit Charge Calculator
Families where either partner earns over £60,000 may need to repay some or all of their Child Benefit. The charge is 1% of the benefit for every £200 of income above £60,000.
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A common mistake is not realising you need to register for Self Assessment to pay the charge. Another misconception is that you should stop claiming – but staying registered protects National Insurance credits for the stay-at-home parent.
For 2026/27, the HICBC thresholds remain at the levels set in April 2024: the charge starts at £60,000 and reaches 100% at £80,000, a significant improvement over the previous £50,000–£60,000 range. The most effective way to reduce or avoid the charge is through pension contributions. Enter your income and number of children below to see how much you'd need to repay.
Your Details
Your total taxable income minus pension contributions and Gift Aid
Use 2026/27 rates
Annual Child Benefit for 2 children:
£2,337.40
HICBC Calculation
✓ No HICBC applies — your income is below £60,000
How it's calculated:
- • Child Benefit received: £2,337.40
- • Income over £60,000: £0.00
- • Charge rate: 0% (1% per £200 over threshold)
- • Tax charge: £0.00
What this means for your family's finances
The HICBC tapers 1% for every £200 earned over £60,000 by the higher earner, and reaches 100% at £80,000 — so above £80k you effectively pay back all the Child Benefit. Crucially, it's based on the highest individual income, not the household total: a couple earning £55k each pays nothing, but a single earner on £80k loses everything.
Always keep claiming Child Benefit even if you'll lose it all to the charge — it protects the non-working parent's National Insurance credits and the child's National Insurance number. The cleanest way to dodge or reduce HICBC is pension contributions, which lower your adjusted net income for the threshold.
What Affects the High Income Child Benefit Charge?
The HICBC is based on your adjusted net income, not your gross salary. This is an important distinction that catches many people out. Here's what affects it:
- Gross income: All taxable earnings including salary, bonuses, dividends, rental income, and benefits in kind
- Pension contributions: Personal contributions to a pension reduce your adjusted net income
- Gift Aid donations: Charitable donations through Gift Aid are deducted
- Trading losses: Self-employment losses can reduce your income figure
The charge applies to the higher earner in a household, regardless of who claims the benefit. If both partners earn over £60,000, the charge applies to whoever has the higher income.
Common Mistakes People Make
1. Using gross salary instead of adjusted net income
Many people think their salary alone determines the charge. In reality, pension contributions and other deductions can significantly reduce your adjusted net income below the threshold.
2. Not registering for Self Assessment
If you're liable for HICBC, you must register for Self Assessment and declare the charge, even if you don't normally complete a tax return. HMRC can charge penalties for late registration.
3. Opting out without considering NI credits
Parents who opt out of receiving Child Benefit should still complete the claim form to protect their National Insurance record—this is often overlooked.
4. Ignoring one-off income spikes
A bonus or redundancy payment can push you over the threshold unexpectedly. Plan ahead by increasing pension contributions in that tax year.
How Pension Contributions Can Reduce the Charge
One of the most effective ways to reduce or eliminate the HICBC is through pension contributions. Here's how it works:
Example Scenario
Sarah earns £65,000 and has 2 children. Her Child Benefit is £2,337.40/year. Without action, she'd face a 25% HICBC charge of £584.35 (1% for every £200 over £60,000).
By contributing £5,000 to her pension, her adjusted net income drops to £60,000— eliminating the charge entirely. She saves £584.35 in HICBC plus receives tax relief on her pension contribution.
Types of pension contributions that count:
- Personal pension contributions: Deducted from your adjusted net income (grossed up for basic rate relief)
- Salary sacrifice: Reduces your gross salary before adjusted net income is calculated—often the most tax-efficient option
- AVCs (Additional Voluntary Contributions): Extra contributions to workplace schemes also reduce your income
Use our Pension Tax Relief Calculator to see how much you'd need to contribute.
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