High Income Child Benefit Charge: The £60,000–£80,000 Taper Explained

Child Benefit is paid to anyone responsible for a child, but higher earners have to pay some or all of it back through the High Income Child Benefit Charge (HICBC). Since April 2024 the charge starts at £60,000 and claws back the full amount by £80,000 of adjusted net income.

How much is Child Benefit?

Child Benefit is paid every four weeks. The weekly rate for the eldest or only child is higher than the rate for each additional child, and the rates rise with inflation each April. For a family with two children it’s worth roughly £2,200 a year. Check GOV.UK for the current weekly amounts.

How the charge works

The charge depends on the adjusted net income (ANI) of the higher earner in the household. That’s the partner with the higher income, whoever actually receives the benefit.

• ANI of £60,000 or less: no charge.
• ANI between £60,000 and £80,000: you repay 1% of the Child Benefit for every £200 of income over £60,000.
• ANI over £80,000: you repay all of it.

For example, with ANI of £70,000 you’re £10,000 over, so you repay 50% of the family’s Child Benefit.

The hidden marginal rate

Inside the £60,000–£80,000 band the charge works like an extra tax on your earnings. With two children, every extra £200 of income costs about £22 in clawed-back benefit, an extra 11% on top of 40% Income Tax and 2% NI. With three or more children it’s higher still. For many parents, this band has the highest marginal rate they’ll ever pay.

The household problem

The charge is based on the higher earner’s income alone, not joint income. A couple earning £55,000 each (£110,000 combined) pays no charge, but a single-earner household on £80,000 repays everything. This unfairness has been widely criticised, and the government has consulted on moving to a household-based system.

Should you still claim?

Even if you’ll repay all of it, it’s usually worth claiming Child Benefit and choosing not to receive the payments. This is called opting out of payments. Claiming still:

• gives the non-working or lower-earning parent National Insurance credits towards their State Pension (for children under 12);
• makes sure your child gets a National Insurance number automatically at 16.

How to pay the charge

You can pay the charge through Self Assessment, or, since 2025, have it collected through your PAYE tax code if you’re employed and have no other reason to file a return. HMRC’s online service lets you register and see an estimate.

Ways to reduce or avoid the charge

Because the charge uses adjusted net income, the same levers as the £100k tax trap work here:

1. Salary sacrifice into a workplace pension
2. Personal pension contributions (the gross amount reduces ANI)
3. Gift Aid donations

On a £70,000 salary, a further £10,000 of pension contribution brings ANI back to £60,000. The family keeps all its Child Benefit, and the £10,000 lands in the pension at a net cost well below £10,000.

Check your adjusted net income

Our take-home pay calculator shows a warning when your income is in the £60,000–£80,000 band, with the extra pension contribution needed to bring it back to £60,000. Remember the warning only applies if you, or a partner who earns less than you, claim Child Benefit.