Answers · UK 2025/26
How is the High Income Child Benefit Charge calculated in 2026/27?
HICBC applies when either partner earns over GBP 60,000 Adjusted Net Income. The charge equals 1% of Child Benefit per GBP 200 of income above GBP 60,000, reaching 100% at GBP 80,000. Child Benefit is GBP 25.60/week first child and GBP 16.95 each additional child in 2026/27. Pension contributions reduce ANI and can avoid the charge.
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The High Income Child Benefit Charge (HICBC) claws back Child Benefit from households where the higher earner has Adjusted Net Income (ANI) above GBP 60,000. The threshold was raised from GBP 50,000 to GBP 60,000 in April 2024. How the charge is calculated The HICBC equals 1% of the Child Benefit received per GBP 200 of ANI above GBP 60,000. The charge reaches 100% (i.e., the full Child Benefit is clawed back) when ANI hits GBP 80,000. Formula: HICBC = Child Benefit x ((ANI - 60,000) / 200) / 100 Example ANI = GBP 70,000, one child: -- Child Benefit: GBP 25.60/week x 52 = GBP 1,331.20/year -- HICBC = GBP 1,331.20 x (10,000/200)/100 = GBP 1,331.20 x 50% = GBP 665.60 Child Benefit rates 2026/27 -- First child: GBP 25.60/week (GBP 1,331.20/year) -- Each additional child: GBP 16.95/week (GBP 881.40/year) Adjusted Net Income ANI is total income minus: personal pension contributions (grossed up), Gift Aid donations, trading losses. Importantly, salary sacrifice pension contributions also reduce ANI (as they reduce gross pay before tax), making salary sacrifice one of the most effective tools for avoiding HICBC. Self Assessment requirement The partner with the higher ANI must register for and file a Self Assessment return to pay HICBC, even if they are employed under PAYE. HMRC can also adjust the tax code to collect the charge during the year. Should you still claim Child Benefit? Yes -- even if you expect to pay back 100%, you should still claim and then opt out of payments (or repay via SA). This protects National Insurance credits for parents not in work, and preserves the child's right to a National Insurance number at age 16. Household not couples HICBC is based on the individual's income, not household income. Two partners each earning GBP 59,000 pay no HICBC, whereas a single earner on GBP 80,000 with a non-working partner loses all Child Benefit.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.