Child Benefit and the High Income Child Benefit Charge
The High Income Child Benefit Charge (HICBC) applies where an individual or their partner receives Child Benefit, and their adjusted net income currently exceeds £60,000. The charge may also apply where another person claims Child Benefit for a child living with you and contributes at least an equal amount towards the child’s upkeep, regardless of whether the child is your own.
Adjusted net income is your total taxable income, including earnings, savings interest and dividends, calculated before the Personal Allowance and after deductions such as pension contributions and Gift Aid.
For the current 2026-27 tax year, if income is between £60,000 and £80,000, the charge is calculated at 1% of the total Child Benefit received for every £200 of income above £60,000. Once income reaches £80,000 or more, the charge equals the full amount of Child Benefit received.
Where both partners have income above the threshold, the charge is paid by the partner with the higher adjusted net income.
Taxpayers can choose to continue receiving Child Benefit and pay the charge or opt out of payments while still remaining registered. Opting out does not affect entitlement and preserves National Insurance credits, which can help build entitlement to the State Pension, and ensures a child can receive a National Insurance number automatically at age 16.
The charge can be paid through PAYE or self-assessment, although self-assessment is required where the taxpayer already files a return for other reasons or where payment is made after 31 January following the end of the tax year.
