Part of our complete guide to personal tax reliefs.
What the charge actually does
The High Income Child Benefit Charge (HICBC) claws back some or all of the Child Benefit a household receives, once the higher earner in that household earns above £60,000. It's a tax charge, not a cap on the benefit itself, you (or your partner) can still claim and receive Child Benefit, but a tax charge equal to part or all of it gets added to your self assessment bill.
How the taper works
- Below £60,000: no charge, Child Benefit is kept in full
- £60,000 to £80,000: the charge increases gradually as income rises within this band
- £80,000 and above: the charge equals 100% of the Child Benefit received, effectively clawing it all back
Use our HICBC calculator to see your exact charge based on your income and how much Child Benefit your household receives.
Key point: it's individual income, not household income. The charge is based on whichever partner earns more individually, not the combined total. Two partners each earning £58,000 (£116,000 combined) pay no charge at all, while a single-earner household on £65,000 does, even though the household income is lower.
Why it catches people by surprise
The most common trigger is a pay rise or bonus that pushes someone just over £60,000 without them realising Child Benefit is still being claimed at home, often by a partner who isn't the higher earner and has no visibility into the other partner's exact salary. By the time self assessment comes around, the charge can be an unwelcome surprise. See our guide on who needs to file self assessment, crossing into HICBC territory is one of the most commonly missed reasons someone suddenly needs to register.
What you can do about it
- Pension contributions reduce your adjusted net income for HICBC purposes, which can bring you back under the threshold or into a lower taper band, use our HICBC calculator to test different contribution levels
- Opt out of receiving the payments while still submitting the Child Benefit claim form, this preserves National Insurance credits toward your state pension without needing to pay the charge back every year
- Register for self assessment if you're not already filing, since HICBC is collected this way, not through PAYE directly
Think you might be affected? Book a free consultation and we'll check your position and the most tax-efficient way to handle it.
Frequently asked questions
At what income does the High Income Child Benefit Charge start?
£60,000 for the highest earner in the household. The charge tapers between £60,000 and £80,000, and claws back all of the Child Benefit once income reaches £80,000.
Whose income counts, mine or my partner's, or both?
It's based on whichever partner in the household has the higher individual income, not the combined household income. Two partners each earning £55,000 (£110,000 combined) pay no charge, while one partner earning £65,000 alone triggers it.
Do I have to pay the charge through self assessment?
Yes, the High Income Child Benefit Charge is collected through self assessment, which means if you're affected and don't already file a return, you may need to register, see our guide on who needs to file self assessment.
Should I just stop claiming Child Benefit instead?
You can opt out of receiving the payments while still submitting the claim form, which keeps your National Insurance credits (important for state pension) without needing to pay the charge back through self assessment every year.