Calculate Your HICBC
Enter your income and number of children to see how much Child Benefit you keep after the High Income Child Benefit Charge.
Annual Child Benefit
HICBC Tax Charge
Net Benefit Kept
Monthly Net
Recommendation
Ways to Reduce Your HICBC
- Increase pension contributions - reduces adjusted net income
- Make Gift Aid donations - extends basic rate band
- Claim allowable expenses - reduces taxable income
- Salary sacrifice - pension, cycle to work, childcare vouchers
Understanding the High Income Child Benefit Charge
The High Income Child Benefit Charge (HICBC) is a tax charge that claws back Child Benefit when you or your partner has "adjusted net income" above £60,000. The charge was introduced in 2013 and was reformed in April 2024 with more generous thresholds.
Under £60k
No HICBC
Keep 100% of Child Benefit£60k-£80k
Partial HICBC
Keep some Child BenefitOver £80k
Full HICBC
All clawed backHow the Charge is Calculated
The HICBC is calculated as follows:
- Identify the partner with the higher adjusted net income
- Calculate how much their income exceeds £60,000
- For every £200 above £60,000, 1% of Child Benefit is clawed back
- At £80,000 or above, 100% is clawed back (the charge equals the benefit received)
Child Benefit Rates 2025/26
Child Benefit is paid to the person responsible for a child under 16 (or under 20 if in approved education or training).
| Children | Weekly Rate | 4-Weekly Payment | Annual Total |
|---|---|---|---|
| 1 child | £25.60 | £102.40 | £1,331.20 |
| 2 children | £42.55 | £170.20 | £2,212.60 |
| 3 children | £59.50 | £238.00 | £3,094.00 |
| 4 children | £76.45 | £305.80 | £3,975.40 |
| 5 children | £93.40 | £373.60 | £4,856.80 |
Note: The eldest or only child receives £25.60/week (£1,331.20/year). Each additional child receives £16.95/week (£881.40/year).
Example HICBC Calculations
| Income | Child Benefit (2 kids) | Clawback % | HICBC | Net Kept |
|---|---|---|---|---|
| £60,000 | £2,212.60 | 0% | £0 | £2,212.60 |
| £65,000 | £2,212.60 | 25% | £553.15 | £1,659.45 |
| £70,000 | £2,212.60 | 50% | £1,106.30 | £1,106.30 |
| £75,000 | £2,212.60 | 75% | £1,659.45 | £553.15 |
| £80,000+ | £2,212.60 | 100% | £2,212.60 | £0 |
Should You Still Claim Child Benefit?
Even if you face 100% clawback, there are important reasons to claim Child Benefit:
National Insurance Credits
The parent receiving Child Benefit gets Class 3 NI credits toward State Pension if they have low/no earnings. This protects their pension entitlement.
Automatic NI Number
Your child automatically receives their National Insurance number at age 16 if you claim Child Benefit - no application needed.
Income Fluctuation
If the higher earner's income drops below £60,000 during the year, you'll benefit from receiving Child Benefit payments.
Opt Out of Payments
You can claim Child Benefit but opt out of receiving payments. This avoids self-assessment while protecting NI credits.
Reducing Your HICBC Through Pension Contributions
Pension contributions are the most effective way to reduce or eliminate HICBC because they reduce your "adjusted net income."
How It Works
If you earn £70,000 and contribute £10,000 to a pension (after tax relief uplift), your adjusted net income becomes £60,000 - below the HICBC threshold. You would:
- Keep ALL your Child Benefit (£2,212.60 for 2 children)
- Get 40% tax relief on your pension contribution
- Build your retirement savings
The Numbers
| Action | Without Pension | With £10k Pension |
|---|---|---|
| Gross income | £70,000 | £70,000 |
| Pension contribution | £0 | £10,000 |
| Adjusted net income | £70,000 | £60,000 |
| HICBC clawback | 50% | 0% |
| Child Benefit kept (2 kids) | £1,106.30 | £2,212.60 |
| Extra benefit from pension | - | +£1,106.30 |
| Tax relief on pension (40%) | - | +£4,000.00 |
| Total benefit | - | £5,106.30 |
By contributing £10,000 to a pension (which only costs £6,000 after tax relief), you gain £1,106.30 in Child Benefit PLUS £4,000 in tax relief. The effective return on your pension contribution is exceptional.
Frequently Asked Questions
The HICBC is a tax charge that claws back Child Benefit from higher-earning families. If you or your partner has adjusted net income over £60,000 (threshold from April 2024), you must repay some or all of your Child Benefit through self-assessment. The charge is 1% of Child Benefit for every £200 of income above £60,000, meaning 100% is clawed back at £80,000 or above. The higher earner pays the charge, even if they don't receive the Child Benefit payments.
Adjusted net income is your total taxable income minus certain deductions. It includes salary, bonuses, dividends, rental income, and taxable benefits. You can reduce it by: gross pension contributions (including employer contributions), Gift Aid donations (grossed up), trading losses, and certain other deductions. This is why pension contributions are so effective for reducing HICBC - a £10,000 pension contribution reduces your adjusted net income by £10,000.
You pay HICBC through a self-assessment tax return. The partner with the higher income must register for self-assessment and declare the Child Benefit received during the tax year. HMRC calculates the charge based on your adjusted net income and includes it in your tax bill. You can pay it as a lump sum or through your PAYE tax code if you're employed. The deadline is 31 January following the tax year end.
No - you should still CLAIM Child Benefit, but you can choose not to RECEIVE the payments. This is because claiming (even without receiving) protects National Insurance credits for the non-working parent (important for State Pension), ensures your child automatically gets their NI number at 16, and means you'll benefit if your income drops below £60,000 unexpectedly. You can opt out of payments online to avoid the self-assessment requirement.
Only the higher earner's income matters for HICBC. If both parents earn exactly the same, technically either could be liable, but in practice, HMRC will pursue the one who earns even £1 more. Importantly, combined income doesn't count - a household with two earners on £59,000 each (£118,000 total) pays no HICBC, while a single earner on £61,000 would face a charge. This creates a "cliff edge" that many consider unfair.
You can backdate a Child Benefit claim by up to 3 months. If you've not claimed because of HICBC concerns, you can claim and backdate, then choose whether to receive payments or opt out. If you previously claimed but stopped receiving due to HICBC, you can restart payments at any time - useful if your income has dropped. You can also claim retrospective NI credits if you were entitled but didn't claim in previous years.
Pension contributions reduce your adjusted net income pound-for-pound. If you earn £70,000 and contribute £10,000 to a pension (after basic rate tax relief is added), your adjusted net income becomes £60,000 - below the HICBC threshold. You'd keep all your Child Benefit AND get 40% tax relief on the pension contribution. For higher-rate taxpayers near the threshold, the combined tax relief and HICBC savings can mean effective pension returns of 60-70% on contributions.
In April 2024, the HICBC thresholds were significantly reformed: The starting threshold increased from £50,000 to £60,000 (meaning those earning £50,000-£60,000 no longer face any charge). The taper range extended to £80,000 (previously £60,000), making the clawback more gradual - you now lose 1% of Child Benefit for every £200 over £60,000 instead of 1% for every £100. This means families earning between £60,000-£80,000 keep more of their Child Benefit than before.