High Income Child Benefit Charge: when you have to pay Child Benefit back

Anyone raising a child in the UK can claim Child Benefit. But if one parent's income is high, some of the benefit is clawed back through a special tax — the High Income Child Benefit Charge (HICBC). It is not a cancellation of the benefit but a tax top-up worked out after the end of the year.

What income triggers the charge?

The charge applies when one partner's adjusted net income is over £60,000 a year. A sliding scale then applies: you repay 1% of the Child Benefit you received for every £200 of income above £60,000. At £80,000 and above you repay the whole amount.

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What matters is the income of the higher-earning partner, not the couple's combined income. If each partner earns £55,000 there is no charge, even though together that is £110,000.

What is adjusted net income?

It is your total taxable income — salary, savings interest, dividends — before the Personal Allowance but after certain deductions. Pension contributions and Gift Aid donations are taken off. That is why paying more into a pension is a legitimate way to bring income below £60,000 and reduce or remove the charge.

How is it paid?

Through Self Assessment. The higher-earning parent registers for HMRC self-assessment and reports the Child Benefit received during the year. The charge is paid with other liabilities by the 31 January deadline.

Claim it or opt out?

Even if you would repay all of it, it is still worth filing a Child Benefit claim. Registering gives a parent who does not work, or earns little, National Insurance credits that protect their future State Pension, and it gets the child a National Insurance number by age 16. You can claim but opt out of the payments — the credits are kept and there is no HICBC to pay. Always check the current thresholds and process on GOV.UK: HICBC rules have changed and the figures may be revised.