Child Benefit tax charge: 2026/27
Child Benefit Tax Charge 2026/27: HICBC at £60k-£80k Explained
Complete guide to the High Income Child Benefit Charge in 2026/27. Threshold raised from £50k to £60k in April 2024 with taper widened from £10k to £20k - many families that paid HICBC pre-2024 now pay nothing. Full clawback above £80k. Worked clawback tables for 1, 2, 3 and 4 children at every £5k income step from £55k to £90k, "adjusted net income" calculation walk-through, pension contribution escape strategy, NI-credit preservation when opting out of payments.
Key 2026/27 HICBC rules
Under £60,000 ANI
No HICBC
Receive full Child Benefit, no clawback. No SA needed for HICBC reason alone.
£60,000-£80,000 taper
Linear clawback
1% per £200 above £60k. Self-assess + pay via SA.
Above £80,000
Full clawback
100% of Child Benefit clawed back. Claim + opt-out of payments preserves NI credits.
2026/27 Child Benefit weekly rates
| Number of children | Weekly rate | Annual (52 weeks) |
|---|---|---|
| 1 child | £27.05 | £1406.60 |
| 2 children | £44.95 | £2337.40 |
| 3 children | £62.85 | £3268.20 |
| 4 children | £80.75 | £4199.00 |
| 5 children | £98.65 | £5129.80 |
Rates: £27.05/week first child, £17.90/week additional children. Paid every 4 weeks (or weekly for lone parents). Rates uprated annually from CPI September of the previous year.
HICBC matrix - 1 to 4 children, income £55k - £90k
Each cell shows: HICBC payable (top) / Net Child Benefit after clawback (bottom). Assumes Child Benefit has been claimed and paid for the full tax year.
| ANI | 1 child | 2 children | 3 children | 4 children |
|---|---|---|---|---|
| £55,000 | HICBC £0 Net £1407 | HICBC £0 Net £2337 | HICBC £0 Net £3268 | HICBC £0 Net £4199 |
| £60,000 | HICBC £0 Net £1407 | HICBC £0 Net £2337 | HICBC £0 Net £3268 | HICBC £0 Net £4199 |
| £65,000 | HICBC £352 Net £1055 | HICBC £584 Net £1753 | HICBC £817 Net £2451 | HICBC £1050 Net £3149 |
| £70,000 | HICBC £703 Net £703 | HICBC £1169 Net £1169 | HICBC £1634 Net £1634 | HICBC £2100 Net £2100 |
| £75,000 | HICBC £1055 Net £352 | HICBC £1753 Net £584 | HICBC £2451 Net £817 | HICBC £3149 Net £1050 |
| £80,000 | HICBC £1407 Net £0 | HICBC £2337 Net £0 | HICBC £3268 Net £0 | HICBC £4199 Net £0 |
| £90,000 | HICBC £1407 Net £0 | HICBC £2337 Net £0 | HICBC £3268 Net £0 | HICBC £4199 Net £0 |
What counts as "adjusted net income"?
ANI = total taxable income MINUS specific deductions. Used for HICBC, the £100k Personal Allowance taper, and pension Tapered AA.
Included in ANI
- Salary / wages (gross, pre-tax)
- Self-employed profit
- Rental income (after allowable expenses)
- Dividends above £500 allowance
- Savings interest above PSA
- Pension income
- Foreign income (UK-resident)
Deducted from ANI
- Gross personal pension contributions (incl. basic-rate added by provider)
- Gift aid donations grossed up by 25%
- Trading losses
- Capital losses brought forward (rarely relevant)
NOT deducted from ANI: employer pension contributions (already pre-salary), employee NI, ISA contributions, EIS/SEIS investment (different relief mechanism). Salary sacrifice into pension is uniquely powerful because the sacrificed amount is excluded from gross salary BEFORE ANI is calculated - it doesn't appear on payslip as taxable income at all.
Pension contribution as HICBC escape route
Pension contributions reduce ANI £-for-£. Bringing ANI below £60,000 eliminates HICBC entirely. The combined marginal rate of pension contribution in the HICBC taper zone is exceptionally high for larger families:
| Children | Annual CB | HICBC marginal % (of income) | Combined marginal rate |
|---|---|---|---|
| 1 | £1407 | 7.0% | 49.0% |
| 2 | £2337 | 11.7% | 53.7% |
| 3 | £3268 | 16.3% | 58.3% |
| 4 | £4199 | 21.0% | 63.0% |
Pension contribution at the combined marginal rate is the most cost-effective tax planning in the £60-80k ANI band for any family with 2+ children. A £10k pension contribution by a £70k earner with 3 children: cost £4,200 net (saving 58% marginal), plus £1634 of HICBC saved (was paying 50% taper, now zero). Net cost ~£2566 for £10,000 of pension contribution.
Claim and opt-out - protecting NI credits
If your adjusted net income is above £80k (full HICBC clawback), there's still a reason to register the Child Benefit claim: National Insurance Class 3 credits for the parent looking after a child under 12. These credits count toward State Pension qualifying years (35 needed for full new SP).
Tick "do not pay me Child Benefit" on the CH2 application form. You don't receive any payments, you don't pay any HICBC, but you preserve the NI credit for each year the child is under 12. Missing 12 years of NI credits (one full pre-school period) costs roughly £4,100/year of State Pension entitlement at full uprating - equivalent to ~£80,000 of accumulated retirement-fund loss over a typical post-State-Pension-age life.
Most relevant for: lone parents on £80k+, families where the lower-earning parent is the primary caregiver but their partner is over £80k, single-earner households. The NI credits cannot be backdated more than 3 months - if you've missed years, they're gone forever. Class 3 voluntary NI is technically available to buy missing years but at £956.80 per year (2026/27), it's a very expensive route compared to free credits via Child Benefit claim.
Frequently asked questions
Who has to pay the High Income Child Benefit Charge in 2026/27?
You pay HICBC if you OR your partner has adjusted net income above £60,000 AND your household claims Child Benefit (whether for your own children or a child you're responsible for). It's based on the higher-earning partner's income alone, NOT combined household income. So a couple earning £55k each (£110k combined) pays ZERO HICBC because neither individual is over £60k. A single earner on £75k with a non-working partner pays full HICBC clawback at 75% of the way through the taper zone. The charge is paid via Self Assessment - the high earner must register for SA, file SA100, and pay the charge through their tax bill. The Child Benefit itself is paid as normal to the claiming parent; HICBC just claws it back via the tax system. From April 2024 the threshold rose from £50,000 to £60,000 and the taper widened from £10k to £20k (so HICBC now phases out 1% per £200 vs old 1% per £100).
How much is Child Benefit in 2026/27?
£27.05 per week for the eldest or only child, £17.90 per week for each additional child. Annual amounts (52 weeks): 1 child £1406.60, 2 children £2337.40, 3 children £3268.20, 4 children £4199.00. Rates uprated from 2025/26 figures (£26.05 / £17.25) by CPI September 2025. Child Benefit is paid every 4 weeks (or weekly for lone parents and certain benefit recipients) into the claimant's bank account, exempt from the means-tested benefit cap. Children under 16 always qualify; 16-19 year olds qualify if in approved education or training (full-time A-levels, NVQ Level 3 and below, unpaid work-based training).
What is "adjusted net income" for HICBC purposes?
Adjusted Net Income (ANI) is your total taxable income from all sources (salary, self-employed profit, dividends, rental income, savings interest above PSA, foreign income) MINUS certain deductions. The key deductions: gross pension contributions made personally (including the basic-rate added by the pension provider for relief-at-source), gift aid donations grossed up by 25% (so £80 donated → £100 ANI reduction), trading losses. ANI is NOT reduced by employer pension contributions made via salary sacrifice (those already reduce your gross salary before ANI is calculated), employee NI contributions (those reduce take-home but NOT taxable income), or ISA contributions. This means salary sacrifice into pension is doubly powerful: it cuts gross salary directly (saving NI + IT) AND keeps ANI low (avoiding HICBC + PA taper). Personal pension contributions also cut ANI but don't save NI. See our maximum pension contribution calculator for the AA / MPAA math.
How does the HICBC taper work exactly?
Between £60,000 and £80,000 of ANI, the charge increases linearly: 1% of Child Benefit per £200 of income above £60,000. At £65,000 ANI you're (£65k-£60k)/£200 = 25% through the taper. At £70,000 you're at 50%. At £80,000+ the charge equals 100% of Child Benefit received. Worked example for a family with 2 children (annual CB £2337.40) at £70k ANI: HICBC = 50% × £2337.40 = £1168.70 payable. The taper applies in £200 increments not pure percentage, but practically it's continuous. Each additional £1 of ANI in this band costs you 0.005% of your Child Benefit (1% / £200). For a 3-child family that's £0.16 of HICBC per £1 of additional income - effectively a 16.3% effective marginal rate addition on top of your 40% IT + 2% NI = 58.3% combined marginal rate in the taper zone.
Should I just not claim Child Benefit if I will pay HICBC?
You should claim and either pay HICBC or opt out of receiving payments. Why: claiming registers you for National Insurance Class 3 credits which count toward State Pension qualifying years for the parent looking after a child under 12 (Section 23A SSCBA 1992). Missing these credits costs ~£275/year of State Pension entitlement for each year missed. Two approaches: (1) Claim and pay HICBC: receive Child Benefit, file Self Assessment, pay the charge. Net result: zero CB if you're over £80k, partial CB if in taper zone, full CB if under £60k. (2) Claim but opt out of payments: register the claim (preserves NI credits) but tick "do not pay me Child Benefit" on the CH2 form. No payments received, no HICBC to pay back, but NI credits still accrue. Used by single high-earners with no need for the cash flow. NEVER simply not claim - you lose the NI credits permanently and they cannot be backdated more than 3 months.
How can pension contributions reduce HICBC?
Personal pension contributions (including via SIPP, workplace AVC, or salary sacrifice) reduce Adjusted Net Income £-for-£. Bringing ANI below £60k eliminates HICBC entirely. Worked example: salary £75,000, 2 children, no pension. ANI £75k = 75% through taper = HICBC £1753.05 of £2337.40 Child Benefit clawed back. Same earner makes £15,000 personal pension contribution: ANI drops to £60,000 = 0% taper = ZERO HICBC. The £15k contribution costs the earner £6k net (£15k × (1 - 40% IT - 2% NI = 58% saving)) and saves £1753.05 HICBC. Net benefit £15k of pension contribution + £1753.05 HICBC saved for £6k effective cost. Effective marginal rate of pension contribution in the HICBC taper zone for a 3-child family: 58.3%. Drops further in £100k-£125,140 zone where PA taper kicks in too (combined effective marginal rate of pension contribution can hit 78% for a 3-child family in that band).
My partner earns more - does this affect me?
HICBC is paid by the partner with the HIGHER adjusted net income, regardless of who claims and receives Child Benefit. So if you (claimant) earn £30,000 and your partner earns £75,000, your PARTNER must register for Self Assessment and pay the HICBC charge - not you. This causes friction in households where the lower-earning Child Benefit claimant didn't realise their partner had crossed the £60k threshold. Common scenarios: bonus pushes partner over £60k mid-year, partner switched jobs, partner's dividend income from side business. The higher-earning partner remains liable for the charge even after relationship breakdown - if the claim continues post-separation, the original "couple at time of claim" higher earner pays. HMRC sends warning letters to suspected high earners with Child Benefit-claiming partners. The "couple" definition: married, civil partners, or living together as if married. Same-sex couples since 2005.
When and how do I pay HICBC?
Through your Self Assessment tax return. If you would otherwise not need to file SA (e.g. you're a PAYE-only employee), HICBC liability forces you to register. Register by 5 October following the tax year in which you became liable. File SA100 by 31 January each year. The charge is calculated as part of your overall tax bill and paid alongside it. HMRC also offers an option to have HICBC collected via your PAYE tax code (a K-code adjustment), reducing your monthly take-home pay - but most people prefer the SA route to control timing. Penalties for failing to register / declare HICBC: 5% / 10% / 30% of the charge depending on careless / deliberate / deliberate-and-concealed behaviour. HMRC ran a major compliance campaign 2019-2022 raising £180m+ from HICBC non-compliance. Common error: assuming HMRC will collect it automatically through PAYE - they will NOT unless you specifically request the K-code adjustment.
Can I backdate a Child Benefit claim?
Yes but only 3 months. If you didn't claim for a child born several years ago, you can register the claim NOW and receive 3 months of backdated payments PLUS NI credits for the 3-month period. NI credits beyond 3 months CANNOT be recovered - this is the single most common gap in many parents' State Pension records. For State Pension purposes you need 35 qualifying years (Section 22 SSCBA 1992 / Pension Act 2014) - missing years are buyable as Class 3 voluntary at £956.80 (2026/27) per year but only the most recent 6 years are typically buyable. The "Specified Adult Childcare" credit lets grandparents claim NI credits for caring for a Child Benefit-claiming family member's child under 12 - useful for grandparents who haven't yet reached State Pension age and have lower NI history. Application via HMRC CA9176 form, jointly signed by the Child Benefit claimant.
What changed with HICBC in April 2024?
Two major changes from 6 April 2024 (Spring Budget 2024). (1) Threshold raised £50,000 → £60,000: the starting point of the taper moved up £10,000, lifting many higher-rate basic taxpayers entirely out of HICBC. (2) Taper widened £50-60k → £60-80k: the taper now spans £20,000 of income vs the previous £10,000, halving the marginal effective rate within the taper zone (from ~32.5pp added at 3-children to ~16pp added). Combined effect: a family with 3 children earning £55,000 paid full HICBC in 2023/24; in 2024/25 onwards they pay zero. A family earning £75,000 with 3 children paid 100% HICBC clawback in 2023/24; in 2024/25 they pay 75%. Promised but NOT delivered: the Conservative government in 2024 announced HICBC would move to a HOUSEHOLD basis from April 2026 (eliminating the single-earner-versus-dual-earner unfairness), but this was scrapped by Labour in Autumn Budget 2024. The individual-basis structure remains in place indefinitely.
I have step-children / foster children - do I qualify?
Yes for both. Child Benefit is paid for any child you're "responsible for" - the legal test is whether the child lives with you OR you contribute to their upkeep at the relevant rate (£27.05 / £17.90 per week). Step-children: claim if the child lives with you (married or unmarried partner's child treated same as own child). Foster children: foster carers can claim if the local authority is NOT paying allowances that include amounts for the child's living costs (in most LA arrangements this means foster carers can NOT also claim CB). Adopted children: claim from the date the adoption order takes effect or the child moves in to the adoptive household, whichever is earlier. Kinship carers (grandparent, aunt/uncle caring for a child under formal arrangement): can claim if you're legally responsible and the child lives with you. Only ONE person can claim Child Benefit per child - if both parents could claim, they decide between themselves (usually the mother or main carer).
What about Child Benefit when working tax credit / Universal Credit applies?
Child Benefit is paid separately from and on top of Universal Credit, Pension Credit, Income Support, etc. It is NOT means-tested directly - only HICBC creates the income-based clawback. Child Benefit IS counted as INCOME for the means test on some other benefits (e.g. carer's allowance, contribution-based JSA) but NOT for UC, Pension Credit, or Council Tax Reduction in most local authority schemes. The benefit cap (currently £25k outside London, £29k in London) does NOT include Child Benefit. Working Tax Credit and Child Tax Credit have closed to new claimants since 2018 (everyone now on Universal Credit), but existing claimants who haven't yet been migrated continue receiving both alongside Child Benefit. UC migration of remaining tax credit claimants is scheduled to complete by end of 2026/27. See our Universal Credit calculator for the UC interaction.
Related calculators and guides
- HICBC calculator - interactive year-by-year HICBC calculation with your specific income.
- HICBC explained guide - narrative deep-dive on the charge mechanics.
- Higher-rate tax 40% guide - the £50,270 threshold that triggers higher-rate tax.
- £100k tax trap - the 62% combined marginal rate PA-taper zone above £100k.
- Salary sacrifice pension 2026/27 - the most tax-efficient way to reduce ANI.
- Max pension contribution calculator - £60k AA and carry-forward.
- Tax-Free Childcare calculator - £2k/£4k government top-up for working parents.
- Universal Credit calculator - UC interaction with Child Benefit.