The High Income Child Benefit Charge (HICBC) claws back Child Benefit once one partner's income rises above a threshold — and that threshold moved again for 2026/27. If either you or your partner earns over £60,000, this is worth checking properly rather than assuming last year's numbers still apply.
What changed
The charge now starts at £60,000 of adjusted net income and applies in full once income reaches £80,000 — a wider band than the old £50,000–£60,000 range, which means fewer families lose their entire Child Benefit outright.
| Adjusted Net Income | Charge |
|---|---|
| Below £60,000 | No charge |
| £60,000 – £80,000 | 1% of Child Benefit per £200 of income over £60,000 |
| £80,000 and above | 100% — full amount clawed back |
Since April 2024, the charge is also assessed on the higher earner in the household rather than being triggered independently by either partner — so a couple each earning £55,000 pays nothing, while a single earner on £70,000 with a non-earning partner is well into the charge.
Still worth claiming Child Benefit even if the charge wipes it out. Claiming (even at a reduced or nil rate) protects your State Pension National Insurance credits and registers your child for a National Insurance number automatically. Opting out of the payment, not the claim, avoids the charge without losing those protections.
How the charge is collected
If you're within the threshold band, the charge is repaid through Self Assessment — meaning you need to register and file a return even if you have no other reason to. HMRC can adjust your PAYE tax code instead if you'd rather avoid a return, though many people prefer the annual filing so they can see the full calculation.
Practical points to consider
Pension contributions reduce adjusted net income
Adjusted net income is calculated after pension contributions, so increasing pension contributions can bring your income back under £60,000 or £80,000 and reduce or eliminate the charge — while also building your retirement pot.
Check both partners' incomes
Only the higher earner's income counts. If income can genuinely be balanced between partners — for example through dividend planning in a family company — it's worth reviewing before the charge kicks in.
Not sure where you stand?
We can work out whether the charge applies to you and the most efficient way to handle it.
Get in TouchThis article is for general information purposes and does not constitute tax advice. Individual circumstances vary. Please speak to a qualified accountant before making any decisions based on this article.