High Income Child Benefit Charge Calculator
Calculate how much Child Benefit you'll lose to HICBC if you or your partner earn over £60,000. Plan pension contributions to reduce or avoid the charge.
After pension & Gift Aid
- Below £60,000: Keep 100% of Child Benefit, no charge
- £60,000 - £80,000: Lose 1% of benefit for every £200 over £60k
- Above £80,000: Lose 100% of Child Benefit through HICBC
Note: The threshold increased from £50,000 to £60,000 in April 2024, and the taper extended to £80,000 (from £60,000).
What is the High Income Child Benefit Charge?
HICBC is a tax charge that claws back Child Benefit from families where one parent earns over £60,000. You lose 1% of your Child Benefit for every £200 you earn over £60,000, meaning it's fully clawed back at £80,000 income.
How is Adjusted Net Income calculated?
Adjusted Net Income is your total taxable income minus pension contributions, Gift Aid donations, and trading losses. You can reduce your income below £60,000 by making pension contributions to avoid or reduce HICBC.
Should I still claim Child Benefit if affected?
Yes! Even if you'll repay 100% through HICBC, you should still claim. Claiming builds National Insurance credits for the stay-at-home parent (important for State Pension) and your children get their own NI number automatically at 16.
Who pays HICBC - the higher or lower earner?
The higher earner pays the charge, regardless of who receives the Child Benefit. This is based on individual income, not household income. If both parents earn £59,000, there's no charge, but if one earns £80,000, you lose it all.
Can I avoid HICBC through pension contributions?
Yes! Salary sacrificing into a pension reduces your Adjusted Net Income. If you earn £65,000 and sacrifice £5,000 into your pension, your ANI drops to £60,000 and you avoid HICBC entirely while boosting retirement savings.