Answers · UK 2025/26

What is adjusted net income for Child Benefit?

Adjusted net income is your total taxable income minus pension contributions and Gift Aid donations. For 2026/27 the High Income Child Benefit Charge starts at £60,000 of adjusted net income and claws back all Child Benefit by £80,000.

Last updated: 1 June 2026Last reviewed: 1 June 2026How we verify

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Adjusted net income (ANI) is the figure HMRC uses to decide the High Income Child Benefit Charge (HICBC). It is your total income from all sources — salary, bonuses, rental income, savings interest, dividends and benefits in kind — minus certain deductions, mainly gross pension contributions and Gift Aid donations. For 2026/27 the charge kicks in once the higher earner in the household has ANI over £60,000, and Child Benefit is fully clawed back by £80,000. Between those figures, the charge is 1% of the Child Benefit for every £200 of income over £60,000. Worked example: you earn £66,000 and receive £2,212 of Child Benefit for two children. Your income is £6,000 over £60,000, which is 30 lots of £200, so you must repay 30% × £2,212 = £664 through Self Assessment. Crucially, ANI is what counts, not gross salary — so a £6,000 gross pension contribution would bring a £66,000 earner down to £60,000 ANI and wipe out the charge entirely, while also gaining tax relief. This is the same ANI figure used for the 60% tax trap and Personal Allowance taper at £100,000. The rules and thresholds are UK-wide, so they are identical in Scotland even though Scottish Income Tax rates differ. Use the Income Tax and Pension calculators to work out your ANI and whether a contribution avoids the charge.