What Is the Child Benefit High Income Charge? (UK 2025/26)

The High Income Child Benefit Charge (HICBC) is a tax that claws back some or all of your Child Benefit when the highest earner in your household has adjusted net income above a set threshold. For 2025/26, the charge kicks in at £60,000 and withdraws Child Benefit fully at £80,000.

How the Charge Is Calculated

You pay back 1% of your total Child Benefit for every £200 of income above £60,000. If you earn £70,000, that is £10,000 over the threshold — divided by £200, that gives you a 50% charge. So you would repay half of your Child Benefit through tax.

At £80,000 and above, you repay 100% of what you received. The charge is based on the higher-earning partner's individual income, not household income.

The Fairness Issue

Because the HICBC is based on individual income, a household where one parent earns £80,000 and the other earns nothing loses all their Child Benefit, while a household where both parents earn £59,999 (combined £119,998) keeps every penny. The government considered moving to a household basis but confirmed in October 2024 that this reform will not go ahead.

Paying the Charge

Since September 2025, HMRC has offered a new digital service that lets employed taxpayers pay the HICBC through their PAYE tax code, removing the need to file a self-assessment return solely for this purpose. Previously, all affected taxpayers had to register for self-assessment.

Should You Still Claim?

Even if you would lose all your Child Benefit to the charge, it is generally worth registering. Claiming Child Benefit ensures the non-working parent receives National Insurance credits towards their State Pension, and your child automatically receives their National Insurance number at 16.