Child Benefit Tax Charge Calculator UK 2026 — High Income Guide

The High Income Child Benefit Charge (HICBC) claws back Child Benefit from higher earners. Here’s exactly how it works and how to minimise it.

How the Charge Works

The Rules

Income	Effect on Child Benefit
Under £60,000	Keep 100%
£60,000-£80,000	Lose 1% per £200 over £60k
£80,000+	Lose 100% (repay it all)

Who Pays?

Situation	Who’s Liable
You claim, you earn most	You pay
Partner claims, you earn most	You pay
Both earn £60k+	Higher earner pays
You’re separated	Based on who child lives with

It’s always the HIGHER earner who pays, regardless of who claims.

Child Benefit Rates 2026/27

What You Receive

Child	Weekly Amount	Annual Amount
First child	£26.05	£1,354.60
Each additional child	£17.25	£897.00

Total Child Benefit by Family Size

Children	Annual Benefit
1	£1,355
2	£2,252
3	£3,149
4	£4,046

HICBC Calculator

Charge Percentage by Income

Adjusted Net Income	Charge Rate	Keep
£60,000	0%	100%
£62,000	10%	90%
£64,000	20%	80%
£66,000	30%	70%
£68,000	40%	60%
£70,000	50%	50%
£72,000	60%	40%
£74,000	70%	30%
£76,000	80%	20%
£78,000	90%	10%
£80,000+	100%	0%

Formula: Charge % = (Income - £60,000) ÷ £200

Example Calculations

Family with 2 children, income £65,000:

Calculation	Amount
Child Benefit received	£2,252
Income over £60,000	£5,000
Charge rate	25% (£5,000 ÷ £200 = 25)
Charge to pay	£563
Net benefit kept	£1,689

Family with 2 children, income £72,000:

Calculation	Amount
Child Benefit received	£2,252
Income over £60,000	£12,000
Charge rate	60% (£12,000 ÷ £200 = 60)
Charge to pay	£1,351
Net benefit kept	£901

Full Table: 2 Children

Income	Child Benefit	Charge	Net Benefit
£60,000	£2,252	£0	£2,252
£62,500	£2,252	£281	£1,971
£65,000	£2,252	£563	£1,689
£67,500	£2,252	£844	£1,408
£70,000	£2,252	£1,126	£1,126
£72,500	£2,252	£1,407	£845
£75,000	£2,252	£1,689	£563
£77,500	£2,252	£1,970	£282
£80,000+	£2,252	£2,252	£0

Paying the Charge

How It’s Collected

Method	Details
Self Assessment	Mandatory if HICBC applies
Registration deadline	October 5 after the tax year
Payment deadline	January 31 following tax year
Can’t avoid register	£100+ penalties if you don’t

What You Must Do

Step	Deadline
Register for Self Assessment	October 5
File tax return	January 31 (paper: October 31)
Pay HICBC	January 31
Report even if opted out	If you received ANY payment

Strategies to Reduce or Avoid HICBC

Pension Contributions

Strategy	How It Works
Contribute to pension	Reduces adjusted net income
Target: get below £60,000	Keep all Child Benefit
Example	£70k income, £10k pension = £60k adjusted

Example: £70,000 Income, 2 Children

Without Pension	With £10,000 Pension
Income: £70,000	Adjusted: £60,000
HICBC: £1,126	HICBC: £0
Child Benefit kept: £1,126	Child Benefit kept: £2,252
Tax relief on pension: £4,000	Tax relief: £4,000
Net position	£1,126 better off

Other Income Reduction Methods

Method	Reduces Income By
Salary sacrifice (pension)	Full amount
Salary sacrifice (other benefits)	Full amount
Charitable donations (Gift Aid)	Grossed-up amount
Trade losses	Amount of loss
EIS/VCT investments	Various reliefs

Salary Sacrifice Example

Before	After Salary Sacrifice
Salary: £65,000	Salary: £60,000
Pension contribution: £0	Employer pension: £5,000
HICBC (2 children): £563	HICBC: £0
Net benefit: £1,689	Net benefit: £2,252
Plus: tax/NI saved on sacrifice	Extra £2,100

Should You Still Claim?

Even at £80,000+, Claiming Has Benefits

Reason to Claim	Why It Matters
NI credits	Stay-at-home parent gets State Pension credits
Child’s NI number	Automatic at age 16
Income may drop	Can restart payments easily
Circumstances change	Divorce, job loss

Opt Out of Payments

What to Do	Effect
Claim Child Benefit	Stays on record
Tick “opt out” box	No payments received
No HICBC to pay	Nothing to pay back
Benefits retained	NI credits, NI number

When to Re-Start Payments

Situation	Action
Income drops below £80,000	Maybe restart (crunch numbers)
Income drops below £60,000	Definitely restart
Partner now higher earner	Partner may owe HICBC

Common Mistakes

Errors to Avoid

Mistake	Consequence
Not registering for SA	Penalties
Forgetting partner earns more	Wrong person pays
Ignoring when opted out	Still need to report if received
Thinking it’s per parent	It’s per household
Not realising bonuses count	Push you over threshold

HMRC Catches These

How	Detail
RTI data	Employer reports your pay
Bank data	Large flows identified
Cross-checking	Child Benefit vs income
Historical catch-up	Years of arrears + interest

Adjusted Net Income

What Counts

Included	Excluded
Salary/wages	ISA income
Bonuses	Tax-free savings interest
Benefits in kind	Employer pension contributions
Dividends	Charitable donations (deducted)
Rental income	Pension contributions (deducted)
Self-employment profit

Calculation

Step	Amount
Total taxable income	£75,000
Minus: gross pension contributions	-£10,000
Minus: Gift Aid donations × 1.25	-£1,250
= Adjusted Net Income	£63,750

Planning for Couples

Income Distribution

If Partner Earns Less	Consider
They claim benefits	Still higher earner pays HICBC
Equalise income	Not usually possible
Partner makes pension contributions	Doesn’t help (it’s your income)

Both Near the Threshold

Both at £70,000	Higher earner pays
Both at £59,500	No HICBC
One at £80k, one at £50k	£80k earner pays 100%

Key Takeaways

1. Higher earner pays — regardless of who claims
2. £60k-£80k — partial charge (claim may still be worth it)
3. Above £80k — claim but opt out of payments
4. Pension contributions — reduce income below threshold
5. Register for Self Assessment — mandatory if charge applies
6. NI credits — valuable reason to claim even at high income

For related content, see our child benefit guide, salary sacrifice calculator, and take-home pay calculator.