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

HICBC is an Income Tax charge that claws back UK Child Benefit when one partner in a household has adjusted net income above £60,000 a year. The charge is 1% of the Child Benefit received for every £200 of adjusted net income above £60,000, rising to 100% at £80,000. It is reported and paid via Self Assessment by the higher-earning partner, even when the other partner is the one receiving the benefit.

When did the threshold rise from £50,000 to £60,000?

The HICBC lower threshold rose from £50,000 to £60,000 with effect from 6 April 2024, legislated in Finance (No. 2) Act 2024. The upper threshold (full clawback) rose at the same time from £60,000 to £80,000 and the per-£X step size rose from £100 to £200. Both thresholds remain unchanged for 2025/26 and 2026/27.

How is the HICBC calculated in 2026/27?

Take the higher partner's adjusted net income, subtract £60,000, divide by £200 and round down. That percentage (capped at 100%) of the annual Child Benefit is the HICBC. Example: £70,000 income, two children. £70,000 - £60,000 = £10,000 / £200 = 50 steps = 50% charge. Two children = £44.95/wk = £2,337.40/year of Child Benefit. HICBC = £2,337.40 x 50% = £1,168.70.

What are the Child Benefit rates for 2026/27?

For the 2026/27 tax year, Child Benefit is £27.05 per week for the eldest or only child and £17.90 per week for each additional child. Annual amounts (52 weeks): one child £1,406.60, two children £2,337.40, three children £3,268.20, four children £4,199.00. Rates rose from £26.05 / £17.25 in 2025/26.

Who actually pays the HICBC?

The higher-earning partner pays HICBC even if the lower-earning partner is the one who claims and receives Child Benefit. There is no joint assessment - HMRC compares each adult's adjusted net income against the £60,000 trigger separately. If both partners earn over £60,000 the one with the higher income is liable. The liable partner registers for Self Assessment (if not already) and pays the charge through their tax return.

Can pension sacrifice reduce or eliminate HICBC?

Yes. HICBC is based on adjusted net income, which is taxable income LESS member pension contributions (via RAS, net pay or salary sacrifice) and LESS Gift Aid donations grossed up. Salary sacrifice into a workplace pension reduces adjusted net income pound for pound. A £70,000 earner with two children can sacrifice £10,000 of salary into pension to bring adjusted net income to £60,000 - eliminating the HICBC entirely. Pension contributions in the £60,000-to-£80,000 zone earn an effective relief rate well over 40%: the contributor saves 40% Income Tax + 2% NI + a slice of the HICBC clawback rate.

Should I stop claiming Child Benefit if my income is over £80,000?

Not necessarily. You can elect to receive zero payment while keeping the underlying claim alive. Doing so avoids the HICBC charge but preserves two important benefits: (1) Class 3 National Insurance credits toward State Pension for the non-working parent until the youngest child turns 12 (worth potentially thousands of pounds in State Pension), and (2) automatic registration of the child on the HMRC system, which simplifies later interactions. HMRC's standard advice is to claim Child Benefit but elect not to receive payment if the charge would otherwise be 100% - retaining the NI credits without paying the charge.

What counts as adjusted net income for HICBC?

Adjusted net income is total taxable income (salary, self-employment profits, rental income, taxable savings and dividends, pension income, taxable benefits in kind such as a company car) LESS allowable deductions: member pension contributions (gross), Gift Aid donations (grossed up by 25%), and trading loss relief. It is the same definition used for the £100,000 personal-allowance taper. Tax-free items (ISA interest, premium bond prizes, employer pension contributions paid by salary sacrifice) do not count.

HICBC at £55,000: UK Child Benefit Charge 2026/27

At £55,000 of adjusted net income, the higher-earning partner sits below the HICBC threshold. For a two-child household, that means £0 of HICBC for the year and £2,337 of Child Benefit retained. Verified against gov.uk/child-benefit-tax-charge and gov.uk/child-benefit-rates.

HICBC (2 children)

£0

0% of £2,337.4 CB

Net Child Benefit retained

£2,337

~£195 a month

Sacrifice to clear HICBC

£0

Brings adjusted net income to £60,000

How HICBC is calculated at £55,000

Take adjusted net income: £55,000 (taxable income LESS gross pension contributions AND grossed-up Gift Aid).
Subtract the lower threshold: £55,000 - £60,000 = £0.
Divide by £200 and floor: No steps (below threshold).
Each step is 1% of the Child Benefit, capped at 100%: 0% for £55,000.
Apply the percentage to the annual Child Benefit. For 2 children: £2,337 x 0% = £0.

HICBC at £55,000 by family size

Child Benefit, HICBC and net retained across 1-4 children. Adjust interactively on the main calculator.

Children	Weekly CB	Annual CB	Taper %	HICBC	Net retained
1	£27	£1,407	0%	£0	£1,407
2	£45	£2,337	0%	£0	£2,337
3	£63	£3,268	0%	£0	£3,268
4	£81	£4,199	0%	£0	£4,199

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Related calculators and explainers

HICBC calculator - adjust income, children and tax year interactively.
High Income Child Benefit Charge explainer - rate tables and pension escape worked example.
Pension contribution calculator - model the exact sacrifice needed to clear HICBC.
Salary sacrifice calculator - quantify the Income Tax + NI saving.
60% tax trap (£100k taper) - the other major marginal-rate cliff in the UK system.
Tax-trap calculator - interactive view of every high-marginal-rate zone.

Frequently asked questions

What is the High Income Child Benefit Charge (HICBC)?: HICBC is an Income Tax charge that claws back UK Child Benefit when one partner in a household has adjusted net income above £60,000 a year. The charge is 1% of the Child Benefit received for every £200 of adjusted net income above £60,000, rising to 100% at £80,000. It is reported and paid via Self Assessment by the higher-earning partner, even when the other partner is the one receiving the benefit.
When did the threshold rise from £50,000 to £60,000?: The HICBC lower threshold rose from £50,000 to £60,000 with effect from 6 April 2024, legislated in Finance (No. 2) Act 2024. The upper threshold (full clawback) rose at the same time from £60,000 to £80,000 and the per-£X step size rose from £100 to £200. Both thresholds remain unchanged for 2025/26 and 2026/27.
How is the HICBC calculated in 2026/27?: Take the higher partner's adjusted net income, subtract £60,000, divide by £200 and round down. That percentage (capped at 100%) of the annual Child Benefit is the HICBC. Example: £70,000 income, two children. £70,000 - £60,000 = £10,000 / £200 = 50 steps = 50% charge. Two children = £44.95/wk = £2,337.40/year of Child Benefit. HICBC = £2,337.40 x 50% = £1,168.70.
What are the Child Benefit rates for 2026/27?: For the 2026/27 tax year, Child Benefit is £27.05 per week for the eldest or only child and £17.90 per week for each additional child. Annual amounts (52 weeks): one child £1,406.60, two children £2,337.40, three children £3,268.20, four children £4,199.00. Rates rose from £26.05 / £17.25 in 2025/26.
Who actually pays the HICBC?: The higher-earning partner pays HICBC even if the lower-earning partner is the one who claims and receives Child Benefit. There is no joint assessment - HMRC compares each adult's adjusted net income against the £60,000 trigger separately. If both partners earn over £60,000 the one with the higher income is liable. The liable partner registers for Self Assessment (if not already) and pays the charge through their tax return.
Can pension sacrifice reduce or eliminate HICBC?: Yes. HICBC is based on adjusted net income, which is taxable income LESS member pension contributions (via RAS, net pay or salary sacrifice) and LESS Gift Aid donations grossed up. Salary sacrifice into a workplace pension reduces adjusted net income pound for pound. A £70,000 earner with two children can sacrifice £10,000 of salary into pension to bring adjusted net income to £60,000 - eliminating the HICBC entirely. Pension contributions in the £60,000-to-£80,000 zone earn an effective relief rate well over 40%: the contributor saves 40% Income Tax + 2% NI + a slice of the HICBC clawback rate.
Should I stop claiming Child Benefit if my income is over £80,000?: Not necessarily. You can elect to receive zero payment while keeping the underlying claim alive. Doing so avoids the HICBC charge but preserves two important benefits: (1) Class 3 National Insurance credits toward State Pension for the non-working parent until the youngest child turns 12 (worth potentially thousands of pounds in State Pension), and (2) automatic registration of the child on the HMRC system, which simplifies later interactions. HMRC's standard advice is to claim Child Benefit but elect not to receive payment if the charge would otherwise be 100% - retaining the NI credits without paying the charge.
What counts as adjusted net income for HICBC?: Adjusted net income is total taxable income (salary, self-employment profits, rental income, taxable savings and dividends, pension income, taxable benefits in kind such as a company car) LESS allowable deductions: member pension contributions (gross), Gift Aid donations (grossed up by 25%), and trading loss relief. It is the same definition used for the £100,000 personal-allowance taper. Tax-free items (ISA interest, premium bond prizes, employer pension contributions paid by salary sacrifice) do not count.