High Income Child Benefit Tax Charge (HICBC) Calculator
If you or your partner has 'adjusted net income' over £60,000, you must repay some or all of your Child Benefit through the High Income Child Benefit Tax Charge (HICBC). Since April 2024, the threshol
How the HICBC Works from April 2024
Following the Spring Budget 2024, the HICBC was reformed significantly:
- Threshold raised: From £50,000 to £60,000 adjusted net income
- Taper changed: For every £200 earned above £60,000 (previously £100 above £50,000), 1% of child benefit is clawed back
- 100% claw-back point: At £80,000+ adjusted net income (previously £60,000)
2025/26 Child Benefit Rates
| Child | Weekly rate | Annual rate |
|---|---|---|
| Eldest / only child | £26.05/week | £1,354.60/year |
| Each additional child | £17.25/week | £897.00/year |
HICBC Taper Calculation
The charge = child benefit received × (adjusted net income − £60,000) / £20,000
Example: 2 children, income £70,000
Child benefit = £1,354.60 + £897.00 = £2,251.60/year
Charge = £2,251.60 × (£70,000 − £60,000) / £20,000 = £2,251.60 × 50% = £1,125.80
Should You Claim Child Benefit?
Even if you'll pay it all back via the charge, claiming child benefit still protects:
- National Insurance credits: For a parent not working, child benefit for under-12s provides NI credits toward State Pension
- Child's NI number: HMRC automatically issues NI numbers to children registered for Child Benefit at age 16
The government plans to move HICBC to a household-income basis (rather than individual income) but this requires new legislation — confirm current rules apply for 2025/26.
Frequently Asked Questions
What is the HICBC threshold in 2025/26?
From April 2024, the HICBC threshold increased from £50,000 to £60,000 adjusted net income. If you or your partner earns less than £60,000, there is no charge. The taper runs from £60,000 to £80,000, where the full benefit is clawed back.
What counts as adjusted net income for HICBC?
Adjusted net income is your total income minus certain reliefs: pension contributions (gross), Gift Aid donations (grossed up), trading losses, and some other reliefs. It's calculated before the personal allowance. Salary sacrifice pension reduces your adjusted net income — useful for avoiding HICBC.
How is the HICBC calculated?
Charge = total child benefit received × ((adjusted net income − £60,000) / £20,000). If income is £80,000+, you pay back 100% of child benefit. Between £60,000–£80,000, you pay back between 0% and 100% proportionally.
Should I opt out of Child Benefit if I earn over £80,000?
You can opt out of receiving payments but should still submit a Child Benefit claim (ticking the 'don't want payments' box). This protects NI credits for a non-working parent and ensures the child gets their NI number automatically at 16. If you stop and restart, there's no penalty.
Can pension contributions reduce my HICBC?
Yes. Pension contributions (including salary sacrifice) reduce your adjusted net income. Paying £10,000 into a pension reduces income from £70,000 to £60,000, potentially eliminating the charge entirely. This is one of the most tax-efficient ways to manage HICBC.
What are the Child Benefit rates in 2025/26?
The eldest or only child: £26.05/week (£1,354.60/year). Each additional child: £17.25/week (£897.00/year). These rates apply from April 2025. Child Benefit is not means-tested — all eligible families can claim, but HICBC applies if either partner earns over £60,000.
Who pays the HICBC — the earner or the Child Benefit claimant?
The HICBC is charged on the partner with the higher income (above £60,000), regardless of who actually claims Child Benefit. If both partners earn above £60,000, it's the higher earner who pays. You must register for Self Assessment to declare and pay the charge.
Does HICBC apply to adopted or non-biological children?
Yes. HICBC applies to all children for whom Child Benefit is paid, including adopted children, stepchildren, and children a couple has taken on. The charge is based on the total Child Benefit received for all children, not per child individually.