High Income Child Benefit Charge (HICBC) 2026/27
The High Income Child Benefit Charge is a tax charge that claws back some or all of your Child Benefit if you or your partner earn over £60,000 (changed from £50,000 in April 2024).
How HICBC Works
| Income Level | Charge |
|---|---|
| Under £60,000 | No charge |
| £60,000 - £80,000 | Gradual clawback (1% of benefit per £200 earned over £60,000) |
| Over £80,000 | Repay 100% of Child Benefit |
Child Benefit Rates 2026/27
| Child | Weekly Rate | Annual |
|---|---|---|
| First/eldest | £25.60 | £1,331 |
| Each additional | £16.95 | £881 |
Example family with 2 children:
- Annual benefit: £1,331 + £881 = £2,212
Calculating the Charge
The HICBC equals 1% of Child Benefit for every £200 of income over £60,000.
Example: Income £70,000, 2 children (£2,212 benefit)
- Income over threshold: £70,000 - £60,000 = £10,000
- Number of £200 bands: £10,000 ÷ £200 = 50
- Percentage to repay: 50%
- HICBC: £2,212 × 50% = £1,106
At £80,000, you repay 100% (£2,212 in this example).
Who Pays the Charge?
- The charge applies to the higher earner in a household
- It doesn't matter whose name the Child Benefit is in
- Both partners should check their income
Reducing Your HICBC
1. Pension Contributions
Pension contributions reduce your "adjusted net income." Contributing enough to bring income below £60,000 eliminates the charge.
Example:
- Income: £70,000
- Pension contribution: £10,000
- Adjusted net income: £60,000
- HICBC: £0
2. Gift Aid Donations
Charitable donations under Gift Aid also reduce adjusted net income.
3. Trading Losses
Self-employment losses can reduce adjusted net income.
Should You Opt Out of Child Benefit?
Even if you face 100% clawback, consider staying registered because:
- National Insurance credits: The person caring for children under 12 receives NI credits toward State Pension
- Income changes: If income drops, you automatically receive the benefit
- Partner income: If your partner's income drops below £60,000, you keep it
You can claim Child Benefit but elect not to receive payments to keep the NI credits.
Reporting the Charge
If you have HICBC liability, you must:
- Register for Self Assessment (if not already)
- Report Child Benefit received on your tax return
- Pay the charge by 31 January
Failure to register and pay can result in penalties.
Frequently Asked Questions
What counts as income for HICBC?
"Adjusted net income" includes:
- Employment income
- Self-employment profits
- Pension income
- Rental income
- Dividends
- Taxable benefits
MINUS pension contributions and Gift Aid.
My partner and I both earn £55,000. Do we pay HICBC?
No. The charge only applies if either partner exceeds £60,000. Joint income doesn't matter.
I forgot to declare HICBC. What happens?
HMRC can assess you for unpaid tax plus interest. You may also face penalties. Voluntary disclosure before HMRC contact reduces penalties.
Related Calculators
- High Income Child Benefit Calculator - Calculate your charge
- Income Tax Calculator - Full tax calculation
- Pension Tax Relief Calculator - How pension contributions help