High Income Child Benefit Charge (HICBC)

Who Has to Pay the High Income Child Benefit Charge

The High Income Child Benefit Charge is an Income Tax charge that claws back Child Benefit when either you or your partner has adjusted net income over £60,000.^[1]

The Thresholds

The charge is based on the higher earner’s income (not household income):^[1]

Adjusted Net Income	What Happens
Below £60,000	No charge — keep full Child Benefit
£60,000 – £80,000	Partial charge: 1% of benefit for every £200 over £60,000
Over £80,000	Full charge — 100% of Child Benefit clawed back

Note: These thresholds apply from 2024/25. Previously the charge started at £50,000 and reached 100% at £60,000.

How It’s Calculated

The charge equals 1% of Child Benefit received for every £200 of income over £60,000. For example, if you earn £68,000 and receive £2,075 Child Benefit for two children:^[4]

Income over threshold: £68,000 − £60,000 = £8,000
Number of £200 portions: £8,000 ÷ £200 = 40
Charge: 40% × £2,075 = £830

Who Pays the Charge?

The charge always falls on the higher earner, even if the other partner claims the benefit. If neither partner is the Child Benefit claimant (e.g. a new partner moves in), the higher earner still pays.^[1]

Reporting on Self Assessment

If you’re liable to the HICBC, you must register for Self Assessment and report the charge on your tax return. This catches many higher earners who’ve never needed to file before.^[3] You can file your first return online with HMRC-recognised software such as GoFile.

Opting Out of Child Benefit

You can choose to stop receiving Child Benefit payments to avoid the charge. However, you should still fill in the claim form to protect your National Insurance record (the claimant gets NI credits for years spent caring for children).^[2]

Reducing Your Adjusted Net Income

You can bring your adjusted net income below £60,000 through:^[1]

Pension contributions — personal contributions reduce adjusted net income
Gift Aid donations — grossed-up amount is deducted
Salary sacrifice — reduces gross income before the test applies

Frequently Asked Questions

At what income does the High Income Child Benefit Charge start?

The charge starts when either parent has adjusted net income over £60,000. Between £60,000 and £80,000, 1% of the Child Benefit is clawed back for every £200 over £60,000. Above £80,000, 100% is clawed back.

Do I need to file a Self Assessment return for the HICBC?

Yes. If you are liable to the High Income Child Benefit Charge, you must register for Self Assessment and report the charge on your tax return, even if you have never needed to file before.

Can I avoid the High Income Child Benefit Charge?

You can reduce your adjusted net income below £60,000 through pension contributions, Gift Aid donations, or salary sacrifice. You can also stop receiving Child Benefit payments, but you should still fill in the claim form to protect your National Insurance record.

Sources

High Income Child Benefit Charge — GOV.UK
Child Benefit — GOV.UK
Self Assessment tax returns — GOV.UK
Child Benefit: tax charge calculator — GOV.UK