High Income Child Benefit Charge (2026/27)
HICBC 2026/27: 1% of Child Benefit per £200 of adjusted net income over £60,000, all of it at £80,000. Tables for 1-4 children and the salary sacrifice route.
Child Benefit rates 2026/27
- Eldest or only child: £27.05 a week (£1,406.60 over 52 weeks).
- Each additional child: £17.90 a week (£930.80 over 52 weeks).
HICBC at typical incomes
| Children | Weekly benefit | Annual benefit | HICBC at £70k | HICBC at £80,000 |
|---|---|---|---|---|
| 1 | £27.05 | £1,406.60 | £703.00 | £1,406.00 |
| 2 | £44.95 | £2,337.40 | £1,168.00 | £2,337.00 |
| 3 | £62.85 | £3,268.20 | £1,634.00 | £3,268.00 |
| 4 | £80.75 | £4,199.00 | £2,099.00 | £4,199.00 |
Annual figures are 52 weeks of benefit. At adjusted net income of £80,000 or above the charge equals the Child Benefit received, so the household keeps none of it. Figures computed by the site's HICBC engine.
The pension sacrifice route
HICBC is based on adjusted net income: total taxable income, including savings interest and dividends, less grossed-up Gift Aid, grossed-up relief-at-source pension contributions and certain other reliefs (HMRC guidance). Salary sacrifice lowers the salary itself, so it lowers adjusted net income pound for pound. Sacrificing enough to bring adjusted net income to £60,000 removes the charge, and each sacrificed pound in this range also avoids 40% Income Tax and 2% NI at rest-of-UK rates.
Example: a £73,000 earner with two children sacrifices £13,000 into a pension, bringing adjusted net income to £60,000. The £13,000 avoids 42% Income Tax and NI (£5,460) and removes a 65% charge on the household's £2,337.40 of Child Benefit (£1,519.00). Total saving: £6,979.00, or 53.7% of the amount sacrificed, which reaches the pension in full. Scottish taxpayers pay Scottish Income Tax rates, so their figures differ. Sacrifice cannot take cash pay below the National Minimum Wage.
Related
Frequently asked questions
What is the High Income Child Benefit Charge?
An Income Tax charge that applies when you or your partner gets Child Benefit and at least one of you has adjusted net income over £60,000. The charge is 1% of the Child Benefit for every £200 of adjusted net income over £60,000, so all of it is repaid at £80,000.
Who pays the HICBC?
The partner with the higher adjusted net income pays, even if the other partner claims the Child Benefit. There is no joint assessment: each partner's adjusted net income is compared with the £60,000 threshold. You can pay through a PAYE tax code or through Self Assessment.
When did the threshold rise from £50,000 to £60,000?
From 6 April 2024, under Finance (No. 2) Act 2024 s.5. The threshold rose from £50,000 to £60,000 and each 1% step from £100 to £200, so the full charge moved from £60,000 to £80,000. The figures are unchanged for 2026/27.
Can I avoid HICBC by stopping the Child Benefit claim?
You can stay registered for Child Benefit but opt out of the payments, in which case you pay no charge. Staying registered keeps National Insurance credits towards State Pension for a parent with a child under 12, and means your child gets a National Insurance number without applying shortly before turning 16. Not claiming at all loses both.
How does pension sacrifice avoid HICBC?
Salary sacrifice lowers your salary, so it lowers adjusted net income pound for pound. Relief-at-source contributions are deducted at their grossed-up amount; net pay contributions are already outside taxable pay. A £73,000 earner can sacrifice £13,000 to reach £60,000 and remove the charge, also saving 40% Income Tax and 2% NI on each sacrificed pound (rest of UK rates).