Child Benefit High Income Charge: What You Pay and How to Repay It

The High Income Child Benefit Charge recovers Child Benefit from households where the highest earner makes over £60,000 a year. From April 2024, the threshold rises to £60,000 from £50,000, and the charge tapers until £80,000 instead of £60,000. If you or your partner earn above the threshold, you repay some or all of your Child Benefit through Self Assessment — but many families still claim it to protect their child's future state pension entitlement.

What Is the High Income Child Benefit Charge?

The High Income Child Benefit Charge (HICBC) is a tax charge introduced in January 2013. It applies if you or your partner have adjusted net income over £60,000 (from April 2024) and either of you receives Child Benefit. "Partner" means a spouse, civil partner, or someone you live with as a couple — whoever earns more is liable for the charge.

Adjusted net income is your total taxable income (salary, rental income, pension income, dividends) minus things like pension contributions and Gift Aid donations. It's not household income — only the highest individual earner in the household matters. If you earn £65,000 and your partner earns £30,000, you pay the charge on the £65,000. If you both earn £55,000, nobody pays.

The charge recovers 1% of your Child Benefit for every £200 of income between £60,000 and £80,000. At £80,000 or above, you repay 100% of what you received. This doesn't stop you claiming — you can still get Child Benefit and repay it later through your tax return, or choose not to receive payments at all.

Many people confuse the charge with losing eligibility. You remain entitled to Child Benefit at any income level. The charge is a tax clawback, not a benefit cap. GOV.UK publishes the current thresholds and rates at www.gov.uk/child-benefit-tax-charge.

How Much You Repay: Examples and Thresholds

From April 2024, the charge tapers between £60,000 and £80,000. For every £200 above £60,000, you repay 1% of your total Child Benefit. If your income is £70,000, that's £10,000 over the threshold: £10,000 ÷ £200 = 50, so you repay 50% of your Child Benefit. At £80,000 or more, you repay 100%.

Child Benefit for 2024–25 is £25.60 per week for your eldest or only child, and £16.95 per week for each additional child. For one child, that's £1,331.20 a year; for two children, it's £2,213.60. Check GOV.UK for current rates — they usually rise each April.

Examples:

• Income £65,000, one child: £5,000 over threshold ÷ £200 = 25% charge. You repay 25% of £1,331.20 = £332.80 through Self Assessment.
• Income £72,000, two children: £12,000 over threshold ÷ £200 = 60% charge. You repay 60% of £2,213.60 = £1,328.16.
• Income £80,000 or more, any number of children: You repay 100% of Child Benefit received.

The charge applies to the tax year in which you received Child Benefit. If your income fluctuates — for example, you earned £58,000 one year and £68,000 the next — you only pay the charge in the year you exceeded £60,000. HMRC calculates it when you file your Self Assessment return, usually by 31 January following the end of the tax year.

Who Pays the Charge and When

The highest earner in the household is liable, even if the other partner claims Child Benefit. If you're the higher earner and your partner receives the payments, you still complete the Self Assessment and repay the charge. HMRC won't automatically know your partner claims Child Benefit — you must declare it.

You must register for Self Assessment if:

• You or your partner claim Child Benefit, and
• Your adjusted net income is over £60,000 (from April 2024), and
• You're the higher earner in the household.

Register by 5 October following the end of the tax year (so by 5 October 2025 for the 2024–25 tax year). You then file your return and pay any charge by 31 January. If you're already in Self Assessment for other reasons (self-employment, rental income), you add the HICBC to your existing return.

Penalties apply if you don't register or file on time. Late registration can trigger a £100 fixed penalty, and late payment incurs interest and further fines. Citizens Advice has a Self Assessment deadline tool at www.citizensadvice.org.uk/tax.

If you're employed and don't usually file a tax return, HMRC may adjust your tax code to collect the charge automatically in future years — but you still need to register for Self Assessment the first time the charge applies.

Should You Opt Out of Child Benefit Payments?

You can choose not to receive Child Benefit payments but still register your claim. This avoids the charge if you earn over £80,000, yet protects your child's National Insurance record. Every year you're registered for Child Benefit, your child gets a National Insurance credit, which counts towards their future state pension — even if they never work before age 16.

To opt out, tick the box on the Child Benefit claim form (or tell HMRC in writing if you've already claimed). HMRC stops payments, but your claim stays open. You can restart payments anytime if your income drops. Many families in the £80,000+ bracket do this: they get no money now, but ensure their child qualifies for a full state pension later.

This matters especially for children who may not work enough years to build their own National Insurance record — for example, if they take time out for caring or have long-term health conditions. Read more about claiming even when you earn too much in our guide Child Benefit: Claim It Even If You Earn Too Much.

If your income is between £60,000 and £80,000, opting out might not make sense. You'd lose part of the money and still need to file Self Assessment to declare the claim. In that range, it's often simpler to receive the payments and repay the percentage through tax.

How the Threshold Changes Affect You

Before April 2024, the charge started at £50,000 and reached 100% at £60,000. The new thresholds — £60,000 to £80,000 — mean:

• Families where the highest earner makes £50,000–£59,999 no longer pay the charge at all.
• Families with income £60,000–£79,999 pay less than before (the taper is gentler over a wider band).
• Families at £80,000+ still repay 100%, but the threshold is higher.

The government also announced it will move to household income assessment (instead of individual income) by April 2026, subject to legislation. This could help couples where both earn just under the threshold but would currently escape the charge, versus a single earner over £60,000. The details aren't final — check GOV.UK for updates closer to 2026.

If you were paying the charge under the old thresholds, HMRC should automatically apply the new rates from April 2024. You don't need to reclaim or notify them — but do check your Self Assessment calculation when you file for 2024–25 to confirm the correct percentage.

Reducing Your Adjusted Net Income to Lower the Charge

Because the charge uses adjusted net income, you can reduce it (and the charge) by:

• Pension contributions: Paying into a workplace or personal pension reduces your adjusted net income by the gross amount. If you earn £62,000 and pay £3,000 gross into a pension, your adjusted net income is £59,000 — below the threshold, so no charge.
• Gift Aid donations: Charitable donations extend your basic-rate tax band, which lowers adjusted net income for HICBC purposes. A £1,000 Gift Aid donation reduces income by £1,250 (grossed up).
• Trading losses or employment expenses: If you're self-employed or claim professional subscriptions, these reduce total income.

Salary sacrifice arrangements (except pensions) don't help — childcare vouchers, cycle-to-work, or car schemes don't reduce adjusted net income for HICBC. Only pension salary sacrifice does.

If you're close to a threshold (say, £61,000), a small pension top-up might save you the entire charge. Run the numbers: repaying 5% of £1,331.20 is £66.56, but a £2,000 pension contribution costs you less in take-home (thanks to tax relief) and eliminates the charge. Citizens Advice or a financial adviser can model this for your situation.

What Happens If You Don't Declare the Charge

HMRC increasingly matches Child Benefit records with income data from employers and Self Assessment. If you earn over the threshold and don't register or file, you may receive a letter or penalty notice. Ignoring it can lead to backdated charges, interest, and fines.

If you only just realised you should have been paying the charge in previous years, you can register for Self Assessment late and declare the arrears. HMRC may waive penalties if you have a reasonable excuse (you didn't know, you misunderstood the rules), but interest on unpaid tax still applies. Contact HMRC on 0300 200 3300 or use the online Self Assessment registration service at www.gov.uk/register-for-self-assessment.

Common mistakes include:

• Thinking the charge only applies if you claim Child Benefit (it applies if your partner claims and you're the higher earner).
• Not realising bonuses or one-off income push you over the threshold in a single year.
• Assuming you're exempt because you opted out of payments (you still declare the claim on your tax return, even if the charge is zero).

Keep records of your Child Benefit claim confirmation, payment statements, and P60s or payslips showing your income. HMRC may query your return, and you'll need proof of what you earned and received.

How the Charge Interacts With Other Benefits

Child Benefit itself is not means-tested — the HICBC claws it back through tax, but you still "receive" it for other purposes. For example:

• Universal Credit: Child Benefit counts as income in the Universal Credit assessment (it reduces your UC payment). The HICBC doesn't change that — UC sees the Child Benefit payment, not the tax charge you repay later.
• Tax credits: If you still receive Child Tax Credit (legacy system), Child Benefit is ignored in that assessment. The HICBC is separate and doesn't affect your tax credit entitlement.
• Free childcare: Eligibility for free childcare hours depends on your work status and income thresholds (usually adjusted net income under £100,000 for the 30-hour entitlement). The HICBC itself doesn't disqualify you, but if your income is over £100,000, you lose the 30-hour offer in England — and you'd also be repaying 100% of Child Benefit.

Child Benefit is completely separate from disability benefits like PIP or Attendance Allowance, which are non-means-tested and based on care needs, not income. The HICBC doesn't affect those at all.

Practical Steps: Claiming, Opting Out, and Filing

If you're expecting a baby or haven't claimed Child Benefit yet:

1. Claim within three months of the birth to backdate payments. Use form CH2 (online or paper) from GOV.UK.
2. If the highest earner will be over £60,000, tick the opt-out box to avoid payments — but still submit the claim to protect your child's National Insurance record.
3. If income is between £60,000 and £80,000, decide whether to receive payments and repay annually, or opt out entirely.

If you already claim and your income just crossed £60,000:

1. Register for Self Assessment by 5 October after the tax year ends (so 5 October 2025 for 2024–25). Do this online at GOV.UK or call HMRC on 0300 200 3300.
2. File your return by 31 January. The online form has a specific section for HICBC — you enter the Child Benefit received and your adjusted net income. HMRC calculates the charge.
3. Pay the charge by 31 January (same deadline as filing). You can pay online, by bank transfer, or set up a payment plan if you can't pay in full.

If your income drops below £60,000 in a later year, you don't pay the charge for that year — but you still file Self Assessment if you're already registered (you can't just stop filing without telling HMRC). If your income stays below the threshold for several years, you can ask HMRC to remove you from Self Assessment.

Common Questions About the Charge

People often ask whether they can split income with a partner to avoid the charge. You can't — HMRC looks at each person's individual adjusted net income, not how you divide money within the household. If one partner earns £70,000 and the other earns nothing, the £70,000 earner pays the charge. Transferring salary or moving assets doesn't help unless it genuinely reduces taxable income (like pension contributions).

Another confusion: "If I opt out, do I lose Child Benefit forever?" No. Opting out stops payments but keeps your claim open. You can restart payments anytime by telling HMRC (call the Child Benefit helpline on 0300 200 3100 or write). Payments resume from the date you request, not backdated — so if your income drops mid-year, restart as soon as you know.

Finally, some families worry the charge isn't worth the hassle. For many, it's not: if you earn £85,000, you repay 100%, so opting out is simpler. But if you earn £65,000, you keep 75% of the benefit (about £1,000 a year for one child) — worth the annual tax return for most people. Run your numbers, and decide what fits your admin tolerance and finances.

This is general information, not personalised advice. Benefit rules change — always check GOV.UK or Citizens Advice for your circumstances.