If you claim Child Benefit and you or your partner is a higher earner, you may have to pay some of it back through the High Income Child Benefit Charge. This catches many families out, and confusion about it leads some to stop claiming altogether, which can be a costly mistake. This guide explains how the charge works in 2026/27, the income thresholds, and why you should usually still claim.
What the charge is
The High Income Child Benefit Charge is a tax charge that claws back some or all of your Child Benefit if you or your partner has an income above a set level. It does not reduce the Child Benefit you are paid; instead, the higher earner pays an extra amount of tax to recover it. The result is that higher-earning households keep less, or none, of their Child Benefit, even though they can still claim it.
The income thresholds
The charge applies if you or your partner has an adjusted net income over £60,000 a year. Between £60,000 and £80,000, the charge gradually increases: for every £200 of income above £60,000, you pay back 1% of your Child Benefit. Once income reaches £80,000, the charge equals the full amount of Child Benefit, so all of it is clawed back. Below £60,000, there is no charge and you keep all your Child Benefit.
It is based on the higher earner, not the household
A much-criticised feature of the charge is that it is based on the income of the higher earner as an individual, not on household income. This creates an odd result: a couple each earning £59,000, with a household income of £118,000, pay no charge, while a single-earner household on £80,000 loses all their Child Benefit. There was talk of moving the charge to a household basis, but the government has confirmed it will remain based on individual income.
What adjusted net income means
The threshold is measured against your adjusted net income, which is broadly your taxable income after certain deductions, most importantly pension contributions and Gift Aid donations. This matters because paying more into a pension can reduce your adjusted net income, potentially bringing it below £60,000 or further down the taper, and so reducing or removing the charge. For some people, this makes a pension contribution doubly worthwhile.
A worked example
Suppose one partner has an adjusted net income of £70,000 and the family claims Child Benefit for two children, worth about £2,337 a year. The income is £10,000 over the threshold, and dividing that by £200 gives 50, so the charge is 50% of the Child Benefit, around £1,168. The family keeps the other half. This shows that even where a charge applies, you can still be left with a worthwhile amount.
Should you still claim?
In almost all cases, yes. If the charge would only take back part of your Child Benefit, you still keep the rest, so it is clearly worth claiming. Even if your income is £80,000 or more, so the charge would take it all, you should still register a claim, because of the National Insurance credits that protect your State Pension and the automatic National Insurance number for your child. You can claim without receiving the payments, as explained next.
Claim but choose not to be paid
If you do not want to deal with the charge, you can register your Child Benefit claim but choose not to receive the payments. This way you avoid the charge entirely while still getting the National Insurance credits and the other advantages of having a claim in place. If your income later falls, you can start receiving payments again. This option is ideal for those who would otherwise have the whole amount clawed back.
How to pay the charge
If you do receive the payments and a charge is due, you need to pay it through the tax system. In the past this meant filling in a Self Assessment tax return, but it is now possible for many people to pay the charge automatically through their PAYE tax code instead, using the HMRC app, which is much simpler. Check the current options with HMRC, as this can save you the work of a Self Assessment return.
Why pension contributions can help
Because the charge is based on adjusted net income, paying more into a pension is one of the few ways to reduce or avoid it, since pension contributions lower your adjusted net income. For someone just over a threshold, a pension contribution can bring them back under £60,000, removing the charge entirely, or further down the £60,000 to £80,000 taper, reducing it. This also boosts your retirement savings, though you should consider the wider picture before deciding.
Keep an eye on your income
If your income is around the thresholds, it is worth keeping an eye on it through the year, including any bonus, overtime or change of job that could push you over £60,000 or up to £80,000. Knowing where you stand lets you plan, for example by adjusting pension contributions, and avoids a surprise tax bill. Because the charge depends on your income for the whole tax year, it pays to think ahead rather than discover the position afterwards.
Separated parents and the charge
The charge can be complicated where parents have separated or formed new households, because it depends on who claims Child Benefit and the income of that person and their current partner. If your family circumstances have changed, it is worth checking how the charge applies to your new situation, as it may be different from before. Getting advice helps you avoid either paying a charge you do not owe or missing one you do.
Do not just opt out and forget
Some higher earners decide simply to stop claiming Child Benefit to avoid the charge, but this can be a mistake if it means the National Insurance credits are lost, particularly for a parent at home with young children. The better course is usually to register the claim and choose not to receive payments, which keeps the credits while avoiding the charge. If you have already opted out fully, it is worth checking whether you should put a claim back in place.
In short
The High Income Child Benefit Charge claws back Child Benefit if you or your partner earns over £60,000, rising to the full amount at £80,000, based on the higher earner's individual income. You should usually still claim, keeping any amount not clawed back and the National Insurance credits, and you can claim without being paid to avoid the charge entirely.
The key takeaway
The most important thing to remember is not to let the High Income Child Benefit Charge put you off having a claim in place. Whether you keep some of the money, or claim without being paid to protect your pension and your child's National Insurance number, registering a claim is almost always the right move. The charge is a reason to plan, not a reason to walk away from Child Benefit altogether.
Where to get help
Citizens Advice and HMRC can help you work out the charge and your options. See our guide to Child Benefit for the rates and how to claim.