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 It is withdrawn at 1% for every £200 of income above £60,000, reaching 100% at £80,000.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 £1,355.60/year (2025/26 rates) — confirm 2026/27 on GOV.UK.

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.

2026/27 Tax Year

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Withdrawn at 1% for every £200 of adjusted net income above £60,000.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£70,000	50% withdrawn
£80,000	100% withdrawn

💡 Adjusted net income

🔧It's your income after pension contributions and Gift Aid — so a £65,000 salary with £6,000 into a pension drops to £59,000 and keeps the full benefit.

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 ≈ £1,355.60/year (2025/26 — confirm 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.