# High Income Child Benefit Charge: the £60,000 threshold and how it works

> Child Benefit is paid to families whatever their income, but a tax charge claws it back when one parent earns over £60,000. This guide explains the…

- URL: https://centiview.com/uk-money/high-income-child-benefit-charge
- Published: 2026-10-23T02:44:00.000Z
- Figures checked: 2026-10-23
- Edited by David A
- Topic: Tax (UK)
- Publisher: Centiview (Persie Ltd, London)
- General information only, not financial advice

Child Benefit is paid to families whatever their income, but a tax charge claws it back when one parent earns over £60,000. This guide explains the thresholds, how the charge is worked out, how it is paid and the opt-out option.

## What the charge is and how it works

Child Benefit is a regular payment for anyone responsible for a child under 16, or under 20 if the child is in approved education or training. It is usually paid every four weeks. The High Income Child Benefit Charge (HICBC) is a separate tax charge that can take some or all of it back. It applies when you or your partner receive Child Benefit and one of you has an adjusted net income above £60,000 in a tax year. If you are both over the threshold, the person with the higher income is the one who pays the charge.

The size of the charge depends on how far above £60,000 the income is. For each £200 of adjusted net income over £60,000, the charge is 1% of the Child Benefit received. At £80,000 the charge reaches 100%, so all of the benefit is repaid through tax. This is the system in place for tax years starting 2024 to 2025 onwards. Before that, the charge began at £50,000 and rose by 1% for every £100 over the line, so it was fully repaid at £60,000. The charge is an income tax liability on the higher earner, not a deduction taken from the payment itself.

## The key figures for 2026/27

Child Benefit rates were increased from 6 April 2026, the start of the 2026/27 tax year. The Child Benefit and Guardian's Allowance Up-rating Order 2026 raised the weekly rate for an eldest or only child from £26.05 to £27.05, and for each additional child from £17.25 to £17.90. Guardian's Allowance, a separate payment, rose from £22.10 to £22.95 a week. These are the rates shown on GOV.UK when this guide was checked on 23 October 2026. The £60,000 and £80,000 points for the charge are the figures GOV.UK gives for tax years from 2024 to 2025.

> **Key numbers** Tax year 2026/27. Child Benefit: £27.05 a week for the eldest or only child, £17.90 a week for each additional child. Charge starts above £60,000 adjusted net income and takes 1% of the benefit for every £200 above that. Fully repaid at £80,000. Figures checked 23 October 2026.

## What counts as adjusted net income

The test is not simply your salary. Adjusted net income starts with your taxable income, which includes things like earnings, savings interest and dividends, then subtracts certain reliefs. GOV.UK describes it as income worked out before the Personal Allowance is taken off. Two common deductions are Gift Aid donations and pension contributions that have been paid after basic-rate tax relief was added by the provider. Each £1 donated or contributed is counted as £1.25 when it is deducted, because the extra 25p represents the basic-rate tax that was added. Pension contributions made gross, for example through some workplace schemes, reduce the net income figure at an earlier step.

## A worked example

The following figures are illustrative only. Suppose a parent has an adjusted net income of £70,000 in 2026/27 and the family receives Child Benefit for one child. The income is £10,000 over the £60,000 threshold. Dividing £10,000 by £200 gives 50, so the charge is 50% of the benefit. Over a full year of 52 weeks at £27.05, the benefit comes to £1,406.60, and half of that is £703.30. With two children, the weekly benefit is £27.05 plus £17.90, which is £44.95, or £2,337.40 over 52 weeks, and the same 50% charge would be £1,168.70. In practice the exact amount depends on the weeks the benefit was actually paid in the year.

As a second illustration, imagine a parent with taxable income of £68,000 who pays £2,400 into a personal pension, to which the provider adds basic-rate relief to make £3,000. Under the 1.25 rule the deduction is £3,000, so adjusted net income is £65,000, which is £5,000 over the threshold. Dividing £5,000 by £200 gives 25, so the charge is 25% of the benefit: for one child, 25% of £1,406.60 is £351.65, compared with £562.64 (40%) without the contribution.

## How the charge is paid, and the opt-out option

There are two ways to pay. In most cases the charge can be collected through PAYE, the system that takes tax from wages, by adjusting the tax code. Self Assessment, the annual tax return, is needed if you must send a return for another reason, such as being self-employed or having untaxed income, and it is also the route if the charge is dealt with after 31 January in the year following the tax year. GOV.UK gives the example that for the tax year starting 6 April 2025, a payment made after 31 January 2027 has to go through Self Assessment. Anyone who used Self Assessment only for this charge can phone HMRC to leave it and register for PAYE.

The other option is to opt out of receiving the payments. You stay registered for Child Benefit but do not receive the money, so there is no charge to pay. Registration matters because it keeps National Insurance credits flowing, which count towards the State Pension, and the child receives a National Insurance number shortly before turning 16 without needing to apply. Many families in the £60,000 to £80,000 range weigh up whether to take the payments and pay the charge or opt out, and the right answer depends on their own figures. GOV.UK points to a separate page for the steps to opt out.

## Who this applies to and who it does not

- Applies where you or your partner receive Child Benefit and one of you has adjusted net income over £60,000 in the tax year.
- Where both partners are over the threshold, the higher earner pays the charge.
- Does not apply where nobody in the household has adjusted net income above £60,000.

> **Who this affects** Households receiving Child Benefit where the higher individual income is above £60,000. Anyone under that line pays nothing under this rule.

## Common mistakes and where to get free help

A frequent mistake is to assume that opting out of payments means giving up registration altogether. Not registering at all can mean missing the National Insurance credits that count towards the State Pension. Another is leaving out income that is not on a payslip, such as savings interest or dividends, when checking the threshold. Free, impartial help is available from GOV.UK, Citizens Advice and HMRC's helplines.

## Check before you act

Rates, thresholds and rules can change, so confirm the figures on the official pages linked below before relying on this guide. It is general information, not personal tax advice.

### Sources
- [GOV.UK, High Income Child Benefit Charge](https://www.gov.uk/child-benefit-tax-charge)
- [GOV.UK, Paying the High Income Child Benefit Charge](https://www.gov.uk/child-benefit-tax-charge/paying-the-charge)
- [legislation.gov.uk, The Child Benefit and Guardian's Allowance Up-rating Order 2026](https://www.legislation.gov.uk/uksi/2026/232/made)
- [GOV.UK, Adjusted net income](https://www.gov.uk/guidance/adjusted-net-income)