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The High Income Child Benefit Charge (HICBC) Explained
Last updated: April 2026 · Reviewed by: Silverwings Benefits Team · Source: HMRC
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The High Income Child Benefit Charge Explained
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The High Income Child Benefit Charge (HICBC) is a tax charge that claws back some or all of your Child Benefit if you or your partner have adjusted net income over £60,000 a year. It does not stop you claiming Child Benefit — it is collected afterwards, through the tax system, usually via a Self Assessment return. Between £60,000 and £80,000 the charge is tapered, and above £80,000 it effectively cancels out the full amount of Child Benefit received. A lot of higher-earning families opt out of receiving the payments altogether to avoid the tax charge and paperwork — but that can be a costly mistake, because claiming (even if you never receive the money) protects valuable National Insurance credits. This page explains exactly how the taper works and why claiming, even above £80,000, is usually still the right move.
How the taper works
For every £200 of adjusted net income above £60,000, you pay back 1% of your Child Benefit. By £80,000, the charge equals 100% of what you received, effectively cancelling it out.
Worked example
If your adjusted net income is £70,000 — halfway between £60,000 and £80,000 — you would pay back 50% of your Child Benefit for the year through the HICBC.
Whose income counts — and what if we're not married?
The charge applies to whichever partner in the household has the higher adjusted net income, regardless of who actually claims the Child Benefit or whether the couple is married, in a civil partnership, or simply living together.
Even if your income means all your Child Benefit is clawed back, claiming is usually still worth doing.
Why claim even if your income is over £80,000?
Claiming Child Benefit — even if you choose not to actually receive the payments — gives the claiming parent National Insurance credits automatically if they are not working or earning enough to pay NI themselves. These credits count towards the State Pension, and gaps can be very expensive to fill in later. It also registers your child for a National Insurance number ahead of their 16th birthday.
Can I claim but opt out of the payments?
Yes. You can submit the claim to protect your National Insurance credits and your child’s NI number, but tick the box to opt out of actually receiving the payments, avoiding the need to declare and repay the charge every year through Self Assessment.
High Income Child Benefit Charge: FAQs
What counts as "adjusted net income" for the HICBC?
It is broadly your total taxable income (salary, dividends, rental income, etc.) minus certain reliefs like pension contributions and Gift Aid donations — not simply your salary.
Can pension contributions reduce the charge?
Yes. Increasing pension contributions reduces your adjusted net income, which can reduce or even eliminate the High Income Child Benefit Charge, as well as saving tax at your marginal rate.
I stopped receiving Child Benefit years ago because of my income — should I restart my claim?
Possibly. If your income has since dropped below £60,000, or you never claimed to protect your National Insurance record, it is worth checking whether restarting or backdating a claim would help you.
Do I need to complete a tax return because of the HICBC?
Yes, if you owe the charge, you will usually need to register for Self Assessment and declare it, even if you do not otherwise complete a tax return.
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Silverwings Benefits is an independent company and is not part of HMRC or the DWP. You can claim Child Benefit yourself directly through HMRC, free of charge, at any time.