Tax Calculator

Child Benefit High Income Tax Charge (HICBC) Calculator 2025/26

From April 2024, the High Income Child Benefit Tax Charge threshold rose from £50,000 to £60,000. The charge is fully tapered away by £80,000. This calculator shows whether you owe the charge — and whether it's worth claiming Child Benefit at all.

Your Family

Number of children you claim Child Benefit for Adjusted net income of higher earner (£) Salary + benefits − pension contributions − gift aid Are you already receiving Child Benefit? Partner's adjusted net income (£) Only the higher earner's income counts

Your HICBC Position

Net Child Benefit position

£0

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Annual Child Benefit entitlement

£0

HICBC charge to pay

£0

% of Child Benefit clawed back

Should you claim?

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NI credits protected?

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Claim even if tax exceeds benefit?

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The High Income Child Benefit Tax Charge — 2024 Rule Changes

The High Income Child Benefit Tax Charge (HICBC) was introduced in January 2013 to reduce the cost of Child Benefit for higher-earning families. Under the original rules, the charge began at adjusted net income above £50,000 and cancelled out Child Benefit entirely by £60,000. From 6 April 2024, the thresholds were significantly changed following widespread criticism that the £50,000 threshold had not kept pace with earnings growth and was unfairly affecting basic-rate taxpayers in London and the South East.

From April 2024, the HICBC now applies as follows: it begins at adjusted net income of £60,000 and is fully tapered by £80,000. Between these thresholds, you pay 1% of the Child Benefit received for every £200 of income above £60,000. So at £70,000 you pay 50% of the Child Benefit back; at £80,000 you pay 100%.

Child Benefit Rates 2025/26

Child Benefit for 2025/26 is:

First child: £25.60 per week (£1,331.20 per year) — increased from £25.60
Subsequent children: £16.95 per week (£881.40 per year each)

A family with two children receives £2,212.60/year in Child Benefit. If the higher earner has income of £70,000, they must repay 50% = £1,106.30 through Self Assessment. At £80,000 or above, the full £2,212.60 is repaid.

The NI Credits Trap — Why You Should Still Claim

One of the most misunderstood aspects of Child Benefit is the NI credits issue. If you claim Child Benefit for children under 12, the non-working or lower-earning partner receives National Insurance credits — protecting their State Pension record for years when they are not earning enough to pay NI. These credits are worth approximately £881 per year in additional State Pension entitlement (over the lifetime of the pension).

Critically, these NI credits are attached to the claim for Child Benefit — not the actual receipt of money. If you opted out of receiving Child Benefit (because you believed the HICBC would cancel it out entirely), you may have also inadvertently sacrificed NI credits. The solution is to claim Child Benefit but elect not to receive payments — this preserves the NI credits while avoiding the administrative burden of paying the HICBC for families where income is above £80,000.

Reducing Your Adjusted Net Income

The HICBC is calculated on "adjusted net income" — your gross income minus certain deductions, including pension contributions (whether through salary sacrifice or personal contributions) and Gift Aid donations (which extend your basic rate band, effectively increasing the deductions). This means there are legitimate ways to bring your adjusted net income below the £60,000 threshold and avoid the charge entirely:

Pension contributions: Every pound you contribute to a pension reduces your adjusted net income by one pound. Contributing £10,000 more to your pension brings a £70,000 income down to £60,000 — below the HICBC threshold. This is both tax-relieved and removes the HICBC — a double benefit.
Gift Aid donations: Gift Aid donations extend your basic rate band, reducing adjusted net income. A £800 Gift Aid donation (£1,000 gross) reduces your adjusted net income by £1,000.
Salary sacrifice: If your employer offers salary sacrifice for pension contributions, childcare, or other benefits, sacrificing salary reduces your gross income — and therefore your adjusted net income — below the threshold.

Self Assessment Obligations

If you or your partner receives Child Benefit and either of you has adjusted net income above £60,000, the higher earner must register for and complete a Self Assessment tax return. The HICBC is declared and paid on that return. The deadline for online Self Assessment returns is 31 January following the end of the tax year. If you have not previously been in Self Assessment, register at gov.uk/register-for-self-assessment.

My income is above £80,000 — should I still claim Child Benefit?+

Yes — if you have children under 12 and your partner does not work or earns below the NI threshold, you should claim Child Benefit and elect not to receive payments. This protects your partner's NI record and State Pension entitlement at no net financial cost to you. Go to gov.uk/child-benefit and use the option to claim without receiving payments.

Does the HICBC apply to both partners' income or just the higher earner?+

Only the adjusted net income of the higher earner counts — it is not based on combined household income. If one partner earns £75,000 and the other earns £80,000, the charge is calculated on the £80,000 earner's income. If both earn £65,000, either could be the "higher earner" and the charge would be based on £65,000.

What if I forgot to register for Self Assessment and owe HICBC?+

Register for Self Assessment immediately via gov.uk. HMRC has become increasingly active in chasing HICBC debts. You can backdate your registration and pay the outstanding charge — late payment interest and potentially penalties may apply, but HMRC takes a more lenient approach where taxpayers make a voluntary disclosure. Do not ignore the liability.