Question 1

When does the High Income Child Benefit Charge apply?

Accepted Answer

The HICBC applies when either parent has adjusted net income above £60,000. If either partner earns between £60,000 and £80,000, you repay a percentage of the child benefit. Above £80,000, you repay 100% of it.

Question 2

How does the child benefit clawback work?

Accepted Answer

For every £200 of income above £60,000, you repay 1% of your child benefit. So at £70,000 (£10,000 over), you repay 50%. At £80,000 or above, you repay all of it. The charge is collected through self-assessment.

Question 3

Can I use pension contributions to avoid the child benefit tax charge?

Accepted Answer

Yes — pension contributions reduce your adjusted net income. If your income is £65,000, contributing £5,000 to a pension brings your income below £60,000, eliminating the charge entirely.

Question 4

Should I stop claiming child benefit if I earn over £80,000?

Accepted Answer

No — always claim child benefit even if you opt out of payments. Claiming protects the lower-earning parent's National Insurance record (important for state pension).

Child Benefit Tax Charge Calculator 2025/26

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