Income Tax UK: Tax Codes, Allowances, PAYE, Scottish Rates and ReliefsChild Benefit Tax Charge Calculator UK 2026 — High Income Guide
Calculate the High Income Child Benefit Charge. See if you should claim, how much you'll pay back, and strategies to reduce or avoid the charge.
For a comprehensive overview of income tax, see our Income Tax 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
- Higher earner pays — regardless of who claims
- £60k-£80k — partial charge (claim may still be worth it)
- Above £80k — claim but opt out of payments
- Pension contributions — reduce income below threshold
- Register for Self Assessment — mandatory if charge applies
- 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.