Should I opt out of receiving Child Benefit payments if I earn over £80,000?

Full answer

For higher earners certain their income will remain at or above £80,000, opting out of receiving Child Benefit payments (while still formally claiming) is usually the simplest practical choice, avoiding an annual Self Assessment repayment cycle for money that nets out to zero anyway. **Why full clawback makes payment pointless for very high earners** Once adjusted net income reaches £80,000, the High Income Child Benefit Charge equals 100% of the Child Benefit received -- meaning the household ultimately keeps none of it, but still has to physically receive the payments and then declare and repay the full amount through Self Assessment. For someone confident their income will stay at or above this level, this is simply unnecessary annual admin with no net financial benefit. **Why you should still register the claim (just opt out of payment)** Crucially, HMRC allows you to make a Child Benefit claim and then elect NOT to receive the payments, while the claim itself remains registered. This matters because the claim (not the payment) is what protects the claiming parent's National Insurance record -- claiming Child Benefit for a child under 12 gives the claimant Class 3 National Insurance credits for each week claimed, protecting their State Pension entitlement even if they are not working or earning enough to pay NI themselves. It also ensures the child is automatically issued a National Insurance number shortly before their 16th birthday, saving a separate application later. If you never make a claim at all, you lose both of these benefits, not just the cash payment. **When opting out (rather than not claiming) is the wrong choice** If your income is closer to the £60,000-£80,000 band, where the charge only claws back PART of the benefit, opting out entirely means giving up the net amount you would have kept -- in this income range, it is usually better to keep receiving the payments and pay the partial charge via Self Assessment, since you retain some net benefit. **What happens if your income later falls** If your income drops back below £80,000 (or below £60,000 entirely) in a future year -- for example after a career change, reduced hours, or retirement -- you can simply switch the election back on and start receiving payments again, without needing to make a brand new claim from scratch, since the underlying claim has remained registered throughout. **Worked example** A higher earner with adjusted net income of £95,000 and one child eligible for £27.05 a week Child Benefit (about £1,407 a year) knows the full amount would be clawed back via the 100% charge if received. They register the Child Benefit claim (protecting their partner's, or their own if they are the claimant, National Insurance credits and their child's future NI number) but tick the option to opt out of actually receiving the payments, avoiding the need to declare and repay £1,407 through Self Assessment each year for no net benefit. **Practical tip** Review the opt-out election if your income changes materially -- a bonus year that unexpectedly pushes you back under £80,000, or a promotion that pushes you further over it, both warrant checking whether opting back in (or staying opted out) remains the right call.

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