High Income Child Benefit Charge (HICBC)
UK tax glossary · Last reviewed: April 2026
The High Income Child Benefit Charge (HICBC) claws back Child Benefit at a rate of 1% for every £200 of income over £60,000. Child Benefit is fully clawed back when income reaches £80,000. These thresholds were raised from £50,000/£60,000 in April 2024.
The charge applies to the higher earner in a household, even if they personally do not receive Child Benefit. If your partner claims Child Benefit and you earn over £60,000, you pay the HICBC through Self Assessment. The charge is based on Adjusted Net Income, so pension contributions and Gift Aid can reduce it.
You can elect to stop receiving Child Benefit to avoid the administrative burden — but you should still register for it to protect your NI record (Child Benefit receipt provides NI credits for the primary carer). The election simply means no payment is made.
Worked example
Income: £72,000. ANI: £72,000. Excess over £60,000: £12,000. Clawback rate: 1% per £200 = 60%. Child Benefit (2 children): £2,212/year. HICBC: £2,212 × 60% = £1,327. Net benefit retained: £885. At £80,000+, full clawback applies.
Common questions
Can I reduce the HICBC by making pension contributions?
Yes. Pension contributions reduce Adjusted Net Income. A parent earning £75,000 who contributes £15,000 to a pension reduces ANI to £60,000 — below the threshold — and eliminates the charge entirely.
What happens if I do not register for Self Assessment but owe HICBC?
You must register for Self Assessment to declare the charge. HMRC cross-checks Child Benefit records and PAYE earnings. Failure to register can result in penalties and interest on unpaid tax.
Related resources
TaxHelper provides general information based on published HMRC rates and guidance. It is not regulated financial or tax advice. For decisions involving significant sums, complex circumstances, or if you are unsure, speak to a qualified accountant or HMRC directly.