High Income Child Benefit Charge Calculator 2026/27

The High Income Child Benefit Charge (HICBC) is a tax charge that claws back child benefit from households where the highest earner has an adjusted net income above £60,000 (from April 2024). If your income is between £60,000 and £80,000, you repay a portion of the benefit. Above £80,000, you repay it all. The charge is paid through Self Assessment, not at source.

For 2026/27, the HICBC starts when adjusted net income exceeds £60,000. The charge is 1% of annual child benefit for every £200 earned above the threshold. At £80,000 or above, the full amount of child benefit is clawed back. This threshold has been in place since April 2024 — before that, the threshold was £50,000 with a taper to £60,000.

The charge is calculated as a percentage of your annual child benefit entitlement. For every £200 your adjusted net income exceeds £60,000, you repay 1% of the total child benefit. For example: if you earn £72,000 and have one child (annual benefit ≈ £1,355), you are £12,000 over the threshold. Divide £12,000 by £200 to get 60. You repay 60% of £1,355 = £813. Your net child benefit is £1,355 − £813 = £542.

Adjusted net income is your total income from all sources — salary, dividends, rental income, savings interest, and any other taxable income — minus certain reliefs. The most useful deduction for contractors is pension contributions: money paid into a personal pension reduces your adjusted net income pound-for-pound. Gift Aid donations are also deductible. It is not the same as your gross salary; it includes dividend income, which many contractors overlook.

Yes — HMRC recommends claiming even if you will pay it all back via the HICBC. The reason is National Insurance qualifying years. The parent who claims child benefit gets NI credits towards their state pension for each year their child is under 12. If you do not claim, you may have gaps in your NI record that reduce your state pension entitlement. You can claim and immediately elect not to receive payments, or claim, receive payments, and pay the HICBC through Self Assessment.

Yes — and this is one of the most valuable tax planning opportunities available to higher-earning contractors. Pension contributions into a personal pension (SIPP or workplace scheme) reduce your adjusted net income. For example, if you earn £75,000 and have one child, you currently pay back 75% of your child benefit. A £15,000 pension contribution brings your adjusted net income to £60,000 — the threshold — eliminating the HICBC entirely. This £15,000 contribution also attracts 40% income tax relief, making the effective cost much lower.

The HICBC was introduced in January 2013. From 2013/14 to 2023/24, the threshold was £50,000, tapering to full repayment at £60,000 (1% per £100 over the threshold). From April 2024 (2024/25 onwards), the threshold was raised to £60,000, with full repayment at £80,000 (1% per £200 over the threshold). This was a significant change that removed the charge entirely for many families earning between £50,000 and £60,000. The calculator lets you compare any year — try switching to 2023/24 to see the old thresholds.

The HICBC is paid through Self Assessment. You declare it on your tax return for the year in which the child benefit was received. Tax returns for 2026/27 (6 April 2026 to 5 April 2027) must be filed by 31 January 2028, with any tax due paid by the same date. If you have not previously completed Self Assessment, you must register with HMRC by 5 October following the end of the tax year. Alternatively, you can ask HMRC to adjust your tax code to collect the charge through PAYE.

No. The High Income Child Benefit Charge is a UK-wide tax and is not devolved to Scotland. The £60,000 threshold and £80,000 full charge threshold apply regardless of where in the UK you live. Scottish Income Tax rates (which apply to salary and self-employment income) are different, but HICBC is calculated using adjusted net income under UK-wide rules — so your Scottish income tax band does not affect the charge.

The HICBC is always charged on the partner with the higher adjusted net income, regardless of which partner claims the child benefit. If both partners earn exactly the same, either can be charged — HMRC will typically charge the one who claimed. If your partner earns more than you, the HICBC is their liability even if the child benefit is paid into your account. You can each check your own income against the £60,000 threshold independently.