Child Benefit Tax Charge (HICBC)
If the highest earner in your household has adjusted net income over £60,000, the High Income Child Benefit Charge claws the benefit back — fully by £80,000. Here's how it works and how to avoid it.
How the HICBC Works
Withdrawn at 1% for every £200 of adjusted net income above £60,000.
| Adjusted net income | Charge |
|---|---|
| Up to £60,000 | 0% (keep all) |
| £70,000 | 50% withdrawn |
| £80,000 | 100% withdrawn |
How to Avoid the Charge
- Pension contributions: the most tax-efficient way to pull adjusted income under £60,000.
- Salary sacrifice: childcare, cycle-to-work or EV schemes all lower taxable pay.
- Opt out but claim credits: stop the cash but keep the National Insurance credits towards State Pension.
- File a return: if you're charged, HMRC collects it via Self Assessment.
Worked Example
One child, benefit ≈ £1,406.60/year (2026/27).
| Income | HICBC | Benefit kept |
|---|---|---|
| £60,000 | £0 | 100% |
| £70,000 | ≈ £678 | 50% |
| £80,000 | ≈ £1,356 | 0% |
Model the effect with a pension in the £70,000 after-tax page or the calculator.
Frequently asked questions
What is the High Income Child Benefit Charge?
The HICBC is a tax charge that claws back Child Benefit from a household where the highest earner's 'adjusted net income' is over £60,000. It is withdrawn at 1% for every £200 of income above £60,000, reaching 100% at £80,000.
How much Child Benefit is lost?
At £70,000 (halfway) you lose 50% of the benefit; at £80,000 it is fully clawed back. One child's benefit is roughly £1,406.60/year (2026/27 rates).
How can I avoid the Child Benefit charge?
Reduce your adjusted net income below £60,000 — most efficiently via pension or salary-sacrifice contributions. You can also opt out of receiving Child Benefit and simply claim the National Insurance credits.