Question 1

What is the High Income Child Benefit Charge (HICBC)?

Accepted Answer

The HICBC is a tax charge that claws back child benefit when the higher-earning person in a household has an adjusted net income above £60,000. The charge increases gradually — 1% of your annual child benefit for every £200 above £60,000 — until it reaches 100% at £80,000. Below £60,000, you keep all your child benefit.

Question 2

Has the £60,000 threshold always applied?

Accepted Answer

No. Before April 2024, the HICBC kicked in at £50,000 and was fully clawed back at £60,000. In the March 2024 Budget, the government raised the taper start to £60,000 and the full clawback point to £80,000 — giving higher earners more breathing room. These thresholds apply for the 2024/25 and 2025/26 tax years.

Question 3

How is the HICBC calculated?

Accepted Answer

HMRC takes your adjusted net income above £60,000, divides it by £200, and claws back that many percent of your annual child benefit. For example, if your income is £70,000 — £10,000 above the threshold — you repay 50% (£10,000 ÷ £200 = 50). At £80,000 or above, 100% is repaid. The charge is collected via Self Assessment.

Question 4

Can pension contributions reduce or eliminate the HICBC?

Accepted Answer

Yes — pension contributions directly reduce your adjusted net income. If your income is £65,000, contributing £5,000 to a pension brings your adjusted net income to £60,000, eliminating the HICBC entirely. You benefit twice: you get full pension tax relief on the contribution AND keep all your child benefit. This is one of the most effective tax strategies for earners between £60,000 and £80,000.

Question 5

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

Accepted Answer

Never stop claiming — but you can elect not to receive payments. Claiming child benefit (even without receiving the money) protects the lower-earning partner's National Insurance record, which counts toward their state pension. If you stop claiming entirely, you lose that NI credit. Always claim, then use your Self Assessment return to zero out the payment if needed.

Question 6

Is the HICBC based on individual or household income?

Accepted Answer

Individual income only. The charge applies to the higher-earning partner's adjusted net income — not your combined household income. Two people each earning £59,000 (household total £118,000) would pay zero HICBC. But one person earning £70,000 (household total £70,000) would face a partial clawback.

Child Benefit Tax Charge Calculator 2025/26

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