If you or your partner earn over £60,000 and someone in the household claims Child Benefit, you may be paying some or all of it back through the High Income Child Benefit Charge. It is one of the most common reasons people in Mid Sussex end up with an unexpected tax bill, or a letter from HMRC, and it is also one of the easiest to plan around once you understand how it works.
The short version
- The charge applies when the higher earner’s adjusted net income is over £60,000.
- You repay 1% of the Child Benefit for every £200 of income above £60,000.
- At £80,000 or more, the charge equals the full Child Benefit.
- It is the higher earner who pays, even if the other partner receives the money.
- Pension contributions and Gift Aid reduce adjusted net income, and can reduce or remove the charge.
How much Child Benefit is at stake in 2026/27
Child Benefit is £27.05 a week for the eldest or only child and £17.90 a week for each additional child. Over a year that is about £1,406.60 for one child and £2,337.40 for two.
How the charge is worked out
The charge is based on adjusted net income, not your salary. In broad terms that is your total taxable income (salary, profits, rental income, dividends, savings interest) less certain reliefs, the main ones being personal pension contributions and Gift Aid donations, both grossed up.
Each £200 over £60,000 adds 1% to the charge. So:
| Higher earner’s adjusted net income | Charge as % of Child Benefit | Charge with two children |
|---|---|---|
| £60,000 or less | 0% | £0 |
| £65,000 | 25% | £584.35 |
| £70,000 | 50% | £1,168.70 |
| £75,000 | 75% | £1,753.05 |
| £80,000 or more | 100% | £2,337.40 |
Between £60,000 and £80,000 the charge works like an extra layer of tax on top of the 40% higher rate. That is why this band is where planning pays off most.
Worked example: a pension contribution that pays for itself (almost)
Sarah is employed on £70,000 and her partner claims Child Benefit for their two children. Her charge for 2026/27 is £1,168.70.
Sarah pays £8,000 into a personal pension. The pension provider claims £2,000 basic rate relief from HMRC, so £10,000 goes into her pension. That £10,000 gross contribution brings her adjusted net income down to £60,000.
- The High Income Child Benefit Charge falls from £1,168.70 to nil.
- She claims a further £2,000 of higher rate relief through her tax return.
- Her pension is £10,000 bigger, at a real cost of about £4,831 (£8,000 less £2,000 less £1,168.70).
Salary sacrifice through an employer scheme can achieve a similar result, because it reduces taxable pay directly. The right route depends on your employer’s scheme and your wider plans, so it is worth checking the numbers before you commit.
Who has to pay, and how
The charge falls on whichever partner has the higher adjusted net income, whether or not they are the one who claims. Partners include spouses, civil partners and anyone you live with as a couple. Ex-partners and people you do not live with are not included.
There are two ways to pay:
- Through PAYE. If you are employed and do not otherwise need to file a tax return, HMRC lets you pay the charge through your tax code instead of registering for Self Assessment.
- Through Self Assessment. If you already file a return, for example because you are self-employed, a landlord or a company director with dividends, the charge goes on your return and is paid with your other tax by 31 January.
If you do need to register for Self Assessment because of the charge, the deadline is 5 October after the end of the tax year. Missing it can lead to a failure to notify penalty, so do not leave it to chance.
Should you stop claiming Child Benefit?
If the higher earner is comfortably over £80,000, the charge cancels the benefit out. Many families then opt out of receiving the payments to avoid the paperwork. Our advice is almost always to keep the claim in place and simply opt out of the payments, because:
- A parent who is not working, or earns under the National Insurance threshold, gets National Insurance credits that count towards their State Pension.
- Your child is automatically sent a National Insurance number before their 16th birthday.
- If income drops in a later year, you can restart the payments without making a fresh claim.
Common mistakes we see
- Assuming salary is the test. Bonuses, rental profits, dividends and savings interest all count towards adjusted net income.
- Not knowing a new partner’s income. Moving in with someone who claims Child Benefit can bring you into the charge from the date you start living together.
- Ignoring it until HMRC writes. HMRC can go back several years, with interest and penalties on top.
- Forgetting the 5 October deadline when the charge is your only reason to file a return.
- Missing the pension planning window. Contributions must be paid by 5 April to count for that tax year.
Questions and answers
Does my partner’s income count towards the £60,000?
No. The test looks at each partner’s own adjusted net income separately. Only the higher earner pays the charge.
Does salary sacrifice reduce the charge?
Yes. Salary sacrifice reduces your taxable pay, which in turn reduces your adjusted net income.
What if I have already been caught by the charge for earlier years?
Tell HMRC as soon as you can. Coming forward before they contact you usually means lower penalties. We can work out what is owed, prepare the disclosure and deal with HMRC for you.
Is the threshold going up again?
The threshold moved from £50,000 to £60,000 in April 2024, with the taper widened at the same time. We will update this guide if the rules change again.
Want us to run your numbers?
If your income is anywhere between £55,000 and £85,000 and your household claims Child Benefit, a short conversation now can save you money before 5 April. Book a free consultation, no obligation, and bring your latest payslip or tax return: book a free consultation. Prefer to talk? Call or WhatsApp us on 01444 300981.
You can also check your take-home pay with our free net pay calculator or work through the effect of pension contributions with our pension tax relief calculator.
Sources
This guide is general information based on the rules for the 2026/27 tax year and is not personal advice. Your own position depends on your full circumstances.