High Income Child Benefit Charge Calculator
Calculate your child benefit tax charge for the 2025/26 tax year
What is the High Income Child Benefit Charge?
The High Income Child Benefit Charge (HICBC) is a tax charge that affects families where one parent earns above a certain income threshold. It was introduced in 2013 to ensure that higher-earning households contribute back some or all of their child benefit through the tax system.
From April 2024, the threshold increased from £50,000 to £60,000, and the full clawback point moved from £60,000 to £80,000. This change benefited thousands of families who were previously affected by the charge.
The charge applies per household based on the highest earner’s income, not combined household income. This means that two parents each earning £59,000 (total £118,000) would not face any charge, whilst a single earner making £65,000 would be subject to the charge.
Current Thresholds and Rates
| Tax Year | Income Threshold | Full Clawback Point | Taper Rate |
|---|---|---|---|
| 2025/26 | £60,000 | £80,000 | 1% per £200 |
| 2024/25 | £60,000 | £80,000 | 1% per £200 |
| 2023/24 and earlier | £50,000 | £60,000 | 1% per £100 |
Child Benefit Rates for 2025/26
The weekly child benefit rates are:
| Child | Weekly Rate | Annual Rate |
|---|---|---|
| Eldest or only child | £26.05 | £1,354.60 |
| Each additional child | £17.25 | £897.00 |
How the Charge is Calculated
The HICBC is calculated based on your adjusted net income and the amount of child benefit received during the tax year. The formula works as follows:
For 2024/25 onwards:
Tax Charge = ((Adjusted Net Income – £60,000) ÷ £200) × Child Benefit Received
What is Adjusted Net Income?
Adjusted net income is your total taxable income before personal allowances, minus certain deductions such as:
Personal pension contributions made through gross contributions or relief at source schemes reduce your adjusted net income. Gift Aid donations to registered charities also reduce your adjusted net income. Trading losses can be deducted if you are self-employed. These deductions can help bring your income below the £60,000 threshold, potentially eliminating or reducing the charge.
How to Pay the Charge
There are now two ways to pay the High Income Child Benefit Charge:
Through Self Assessment
The traditional method requires you to complete a Self Assessment tax return each year. You must register for Self Assessment if you are not already registered. The charge is reported on the SA100 tax return form. Payment is due by 31 January following the end of the tax year.
Through PAYE (New from 2025)
HMRC introduced a new service allowing employees to pay the charge through their PAYE tax code. You can opt in through your personal tax account on the HMRC website. HMRC will adjust your tax code, and the charge will be deducted automatically from your salary. This option is only available to employees who pay tax through PAYE. This method removes the need for a Self Assessment tax return solely for the purpose of paying the HICBC.
Should You Still Claim Child Benefit?
Even if you earn over £80,000 and must repay the full amount, there are still good reasons to claim child benefit:
National Insurance Credits: The person claiming child benefit receives National Insurance credits until the child turns 12. These credits protect your entitlement to the State Pension, particularly important if you take time off work to care for children.
Flexibility for the Future: If your income drops below the threshold in future years, you can start receiving the payments again without needing to make a new claim. Your child benefit claim remains active even if you opt not to receive payments.
How to Opt Out of Payments: You can choose to claim child benefit but not receive the payments. This is done when you first apply or later through your child benefit account. You still receive National Insurance credits even if you opt out of payments. You can change your mind at any time and start receiving payments again.
Frequently Asked Questions
Do both parents’ incomes count together?
No, the charge is based on the highest individual income in the household, not combined income. If neither parent earns over £60,000, there is no charge, even if their combined income is much higher.
What happens if we both earn over £60,000?
The partner with the higher income pays the charge. Only one person in the household is liable, even if both earn above the threshold.
Can I reduce my adjusted net income to avoid the charge?
Yes, making additional pension contributions or charitable donations through Gift Aid can reduce your adjusted net income. If you earn £62,000 and contribute £2,500 to your pension, your adjusted net income drops to £59,500, eliminating the charge.
What if I only receive child benefit for part of the year?
The charge is proportional to the number of weeks you received child benefit during the tax year. If your child turns 16 or you stop claiming part-way through the year, the charge only applies to the period you received payments.
Is there a penalty for not paying?
Yes, if you do not pay the charge or register for Self Assessment when required, HMRC can issue penalties. These start at £100 for late filing and increase over time. Interest is also charged on late payments.
Will the charge become household-based?
The government announced plans to change the charge to a household basis by April 2026, which would mean assessing combined parental income rather than individual income. However, details and implementation are still being consulted on.
References
- HM Revenue & Customs. (2024). High Income Child Benefit Charge: Overview. GOV.UK. Available at: https://www.gov.uk/child-benefit-tax-charge
- Low Incomes Tax Reform Group. (2025). High income child benefit charge. LITRG. Available at: https://www.litrg.org.uk/tax-nic/income-tax/high-income-child-benefit-charge
- Deloitte UK. (2024). Changes to the High Income Child Benefit Charge. TaxScape. Available at: https://taxscape.deloitte.com/measures-spring-budget-2024/changes-to-the-high-income-child-benefit-charge.aspx
- Turn2us. (2024). High income Child Benefit Tax Charge explained. Turn2us. Available at: https://www.turn2us.org.uk/get-support/information-for-your-situation/child-benefit/high-income-child-benefit-tax-charge
- HM Revenue & Customs. (2025). Child Benefit rates and eligibility. GOV.UK. Available at: https://www.gov.uk/child-benefit-rates