High Income Child Benefit Charge
The High Income Child Benefit Charge claws back 1% of Child Benefit for every £200 of adjusted net income over £60,000, and all of it at £80,000.
The High Income Child Benefit Charge (HICBC) is a tax charge that takes back some or all of the Child Benefit paid to your household. It applies if you or your partner has adjusted net income over £60,000, the threshold for tax years from 2024 to 2025 onwards. If both of you are over it, GOV.UK says “whoever has the higher income is responsible for paying the tax charge”.
According to GOV.UK, the charge is “1% of your Child Benefit for every £200 you earn over the threshold”. At £80,000 or more, you pay back all of it.
Example: Child Benefit for one child is £27.05 a week, about £1,406.60 over 52 weeks. With adjusted net income of £70,000, you are £10,000 over the threshold, so the charge is 50%, or about £703.30.
You can pay the charge through PAYE or Self Assessment. You can also opt out of Child Benefit payments to avoid the charge; according to GOV.UK you stay registered and keep National Insurance credits that count towards your State Pension.
Pension contributions reduce adjusted net income and can cut the charge. Model your pay with the UK take-home pay calculator.
Tools that use it
Guides that explain it
- Payments on account: when they're due and how to reduce them
- The 60% tax trap: how the £100,000 Personal Allowance taper works
- High Income Child Benefit Charge: how it is worked out and cut
- Is salary sacrifice worth it? How much you actually save
- Pay rise take home: how much of a UK pay rise will you actually keep?