The High Income Child Benefit Charge is a tax that claws back some or all of your Child Benefit once the higher earner in your household has adjusted net income above £60,000. You pay 1% of the benefit for every £200 of income over that figure, so the whole amount is recovered by £80,000. It is based on one person, not joint income, and for 2025/26 and 2026/27 you can settle it through Self Assessment or, if employed, through your tax code.

The charge trips up thousands of families every year, often because a pay rise or a bonus quietly pushes one partner past the threshold. The good news is that the rules are now more generous than they were, and there is a simpler way to pay. This guide explains who it hits, how the maths works, and the choices you have.

Who has to pay the High Income Child Benefit Charge?

You may have to pay the charge if you or your partner claims Child Benefit and one of you has an adjusted net income above £60,000 in the tax year. It applies whether the children are yours or you are contributing to the upkeep of a child who lives with you.

The key point is that the charge is measured against one person, the higher earner, and not against your combined household income. Two partners each earning £55,000 pay nothing, because neither of them crosses £60,000. A single earner on £61,000 whose partner has no income does have to pay, even though the household takes home far less. It feels rough, and the government looked at moving to a household basis, but that reform was cancelled at the Autumn Budget in 2024. The individual test remains in place for 2025/26 and 2026/27.

How much is the charge?

The charge is worked out as a percentage of the Child Benefit your household received in the tax year. For every £200 of adjusted net income above £60,000, you repay 1% of the benefit. That gives a simple sliding scale.

  • Below £60,000: no charge, you keep all the Child Benefit.
  • Between £60,000 and £80,000: a partial charge that rises steadily.
  • £80,000 or above: the charge equals the full Child Benefit, so effectively it is all repaid.

Because the band runs from £60,000 to £80,000, a spread of exactly £20,000, each £200 step is worth one percentage point and there are one hundred steps in total. For example, income of £70,000 sits halfway through the band, so the charge recovers 50% of the benefit. Income of £64,000 is £4,000 over the threshold, which is twenty lots of £200, so the charge is 20%.

What counts as adjusted net income?

Adjusted net income is your total taxable income before personal allowances, less certain reliefs. The two that matter most are pension contributions and Gift Aid donations, both of which reduce the figure. This is why the charge is often avoidable. If a bonus tips you just over £60,000, paying more into your pension can bring your adjusted net income back down and reduce or remove the charge altogether. Business owners in particular have room to plan here, and our guide to pension contributions and tax relief for business owners shows how the numbers stack up.

The same threshold logic drives another well known trap higher up the scale. If your income runs toward £100,000, read our note on personal allowance tapering, because the two effects can bite at once.

How do you pay the charge?

For years the only route was Self Assessment. If you were caught by the charge you had to register, file a return, and settle the amount by 31 January after the end of the tax year. That is still available, and for anyone who is self employed or already files a return it remains the natural home for the charge. Our overview of Self Assessment deadlines and penalties sets out the dates you cannot afford to miss.

From 2025 there is a second option. HMRC launched a digital service that lets employed taxpayers pay the charge through their PAYE tax code, without registering for Self Assessment or filing a full return. You tell HMRC about the Child Benefit, and the charge is collected across the year through adjustments to the tax you pay on your wages. For a family with straightforward affairs this removes a whole layer of admin. It does not change how much you owe, only how you hand it over.

Should you keep claiming Child Benefit at all?

If the higher earner is on £80,000 or more, the charge wipes out the entire benefit, so it can feel pointless to claim. In many cases it still pays to register the claim and then opt out of receiving the payments. Claiming protects your State Pension record through National Insurance credits for the parent at home, and it makes sure the child gets a National Insurance number automatically. You take the credits without triggering a charge you would only have to repay.

When does the charge apply and what to watch

The charge bites for the tax year in which your income crosses the threshold, so a one off bonus or a change of job mid year can pull you in unexpectedly. If you move onto Self Assessment, remember that a larger bill can also create payments on account for the following year, which affects your cash flow. Keep an eye on your projected income as the year unfolds rather than waiting for the January reckoning.

Get the figures wrong and HMRC can open an enquiry, which is stressful and can carry professional fees even when you have done nothing deliberately wrong. Solar Protect tax investigation insurance covers up to £100,000 of your accountant’s fees with no excess, so a routine query does not turn into an unexpected cost. Get a quote.

For more on the reliefs, thresholds and deadlines that shape a personal tax bill, our full accountancy and tax guide pulls the pieces together in one place.

Related guides: tax investigation insurance for high earners.

Reviewed by Matthew Bartlett, Director, Solar Protect. This guide is general information, not personalised tax or financial advice. Figures are correct for the 2025/26 and 2026/27 UK tax years at the time of writing.