What is the High Income Child Benefit Tax Charge?

When does the High Income Child Benefit Charge apply?  

If you or your partner receive Child Benefit and one of you has income above £60,000 in a tax year, you may have to pay the High Income Child Benefit Charge (HICBC).  

This includes where someone else gets Child Benefit for a child living with you and they contribute at least an equal amount towards the child’s upkeep. It does not matter if the child living with you is not your own child.  

To calculate if your income is over the threshold, you will need to work out your ‘adjusted net income’. Adjusted net income is your total taxable income before personal allowances with some key deductions and grossing-up calculations. For an example of how to calculate adjusted net income, see our guide here. 

Once your adjusted net income is £80,000 or more, the HICBC will equal the Child Benefit you receive and cancel out the financial benefit of the Child Benefit fully. 

If you and your partner both have adjusted net income of over £60,000, then whoever has the higher income is responsible for paying the HICBC.  

‘Partner’ means someone you’re not permanently separated from who: 

• you’re married to, 
• in a civil partnership with, or  
• living with as if you were. 

Do I have to stop claiming Child Benefit?  

If your income is over £60,000, you can choose to:  

• receive Child Benefit payments and pay any HICBC at the end of each tax year, or 
• opt out of receiving Child Benefit payments and you will not need to pay the HICBC. 

Should I start to claim Child Benefit at all if my income is over £60,000? 

If you choose to opt out of getting Child Benefit payments, you should still fill in the Child Benefit claim form when you have a baby, but state on the form that you do not want to get the payments.  

You need to fill in the claim form if you want: 

• to receive National Insurance credits, which count towards your State Pension, and  
• for your child to receive a National Insurance number without them having to apply for one - they’ll usually get the number just before they turn 16 years old.  

How do I pay the High Income Child Benefit Charge?

You can pay HICBC via your self-assessment tax return or, if you don’t need to a file a tax return for any other reason, you can apply online for HMRC to adjust your tax code so that you pay the HICBC via PAYE.  

Who can use the PAYE option?  

You can usually pay through your tax code if:  

• The HICBC is the only reason you would need to complete a tax return, 
• You are an employee or receive a pension taxed through PAYE; and  
• You notify HMRC before the deadline (normally 31st January following the end of the tax year).  

For example, to pay HICBC through PAYE for the 2025/26 tax year, you need to register online by 31st January 2027. 

If you already complete a self-assessment tax return for other reasons (for example self-employment, rental income or significant investment income), you will still need to report and pay the charge through your tax return.  

What if I’ve previously completed tax returns just to pay HICBC?  

If the HICBC was the only reason you were completing self-assessment, you can ask HMRC to remove you from self-assessment and register to pay through your tax code instead.  

What happens if my circumstances change?  

You should inform HMRC if:  

• Your income goes above or below the £60,000 threshold 
• You stop receiving Child Benefit 
• Your relationship and residence status changes 
• You want to switch between the self-assessment and PAYE payment methods.  

If you pay through PAYE, HMRC will adjust your tax code when changes are reported.  

How TaxAssist can help  

Understanding whether you need to pay the HICBC can be complex, particularly where income fluctuates or pension contributions are involved.  

TaxAssist Accountants can check whether the charge applies to you and advise you on your options. Call us now on 01753 971 440 or use the online contact form. 

Last updated: 3rd March 2026