What is the Child Benefit rate for 2025/26?
£26.05 per week for the first or only child (£1,354.60/year), and £17.25 per week for each additional child (£897.00/year). Child Benefit is paid every 4 weeks, usually to the main carer.
What is the High Income Child Benefit Tax Charge?
The HICBC claws back Child Benefit when either partner's adjusted net income exceeds £60,000. The charge is 1% of the benefit per £200 of income above £60,000 — reaching 100% (full clawback) at £80,000. It's paid via Self Assessment.
Should I claim if I earn over £60,000?
Yes — always claim, even if you face the full clawback. Claiming builds National Insurance credits toward your State Pension and registers your child for an NI number. You can elect not to receive payments to avoid HICBC administration while still getting the NI credits.
Can I reduce the HICBC with pension contributions?
Yes. Pension contributions (including salary sacrifice) reduce your adjusted net income. If your income is close to £60,000, contributing more to a pension could eliminate the charge entirely. For example, earning £68,000 with £8,000 of additional pension contributions brings adjusted net income to £60,000 — no charge.
What changed in April 2024?
The HICBC threshold rose from £50,000 to £60,000 and the full clawback point rose from £60,000 to £80,000. This means anyone earning between £50,000 and £60,000 who previously had a partial or full clawback now keeps their full benefit. Millions of families were taken out of the HICBC entirely.
How do I pay the HICBC?
Via Self Assessment. If you're subject to the charge, you must register for and complete a Self Assessment return each year. HMRC will not collect it automatically. Register by 5 October following the end of the tax year. If you have PAYE only, this may be your first time doing Self Assessment.
What is adjusted net income?
Adjusted net income is your gross income minus pension contributions (personal contributions or salary sacrifice), Gift Aid donations (grossed up), and trading losses. It's different from your take-home pay or your PAYE taxable income. HMRC explains the calculation on GOV.UK. If in doubt, use your gross salary and deduct any pension contributions you make.
How Child Benefit and the High Income Charge Work
Child Benefit is paid to whoever is responsible for a qualifying child under 16 (or under 20 in approved education or training). The 2025/26 rates are £26.05 per week for the first child and £17.25 per week for each additional child. You don't have to claim Child Benefit to receive it in full — but if either parent earns above £60,000, it triggers the High Income Child Benefit Tax Charge (HICBC).
The High Income Child Benefit Tax Charge
The HICBC claws back 1% of the benefit for every £200 of adjusted net income above £60,000. At £80,000 or above, the charge equals the full benefit — meaning you receive nothing net. The charge is based on the higher earner's income, not household income, which creates some well-known anomalies: a couple each earning £59,000 keeps all their Child Benefit, while a single earner on £80,000 keeps none.
The charge is collected via Self Assessment. If you haven't registered before, you'll need to do so. HMRC can also adjust your PAYE tax code to collect it monthly.
Pension contributions as a solution
Because HICBC is based on adjusted net income — which is reduced by personal pension contributions — making additional pension contributions is one of the most tax-efficient moves available to earners in the £60,000–£80,000 band. Every £1 of additional pension contribution reduces your adjusted net income by £1, potentially reducing or eliminating the charge. Combined with 40% income tax relief on contributions in this band, the effective rate of tax relief on pension contributions in this range can reach 60% or more.