HICBC on £70,000 Salary 2026/27: How Pension Contributions Cut the Charge
A worked example of the High Income Child Benefit Charge on a £70,000 salary in 2026/27, and how increasing pension contributions reduces or eliminates it.
The taper mechanics
The High Income Child Benefit Charge claws back 1% of a household's Child Benefit for every £200 of adjusted net income above £60,000, reaching 100% clawback at £80,000. Adjusted net income is total taxable income minus certain reliefs including pension contributions made through salary sacrifice or a net pay workplace scheme — which is exactly what makes pension contributions such an effective planning tool here.
High Income Child Benefit Charge Calculator
Calculate how much Child Benefit you keep after the High Income Child Benefit Charge based on your adjusted net income.
Open HICBC Calculator calculatorWorked example: £70,000 salary, two children
Weekly Child Benefit for two children: £27.05 (first child) + £17.90 (additional child) = £44.95, or £2,337.40 a year. At £70,000 adjusted net income, that is £10,000 above the £60,000 threshold, which is 50 lots of £200, meaning 50% of the Child Benefit is clawed back through the tax charge: £2,337.40 × 50% = £1,168.70.
Using pension contributions to reduce the charge
If this same person increased their pension contribution by £10,000 a year (through salary sacrifice or additional personal contributions relieved at source), their adjusted net income would fall to £60,000, eliminating the HICBC entirely and keeping the full £2,337.40 of Child Benefit — while also securing pension tax relief on the contribution itself. A smaller top-up, say £5,000, would bring adjusted net income to £65,000, halving the charge to £584.35 rather than eliminating it.
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A £70,000 earner with two children loses roughly £1,169 a year to the High Income Child Benefit Charge, but a sufficiently large pension contribution can bring adjusted net income back under £60,000 and eliminate the charge completely, while simultaneously building retirement savings with tax relief. The right amount to contribute depends on balancing that saving against reduced take-home pay and delayed access to the money.
Sources
- GOV.UK: High Income Child Benefit Charge
- GOV.UK: Tax on Your Private Pension: Annual Allowance
- GOV.UK: Child Benefit Rates
Frequently asked questions
At what income does the High Income Child Benefit Charge start?
The charge starts once adjusted net income exceeds £60,000, and Child Benefit is fully clawed back once adjusted net income reaches £80,000, tapering at a rate of 1% of the Child Benefit received for every £200 of income above £60,000.
How much HICBC would someone earning £70,000 with two children pay?
Two children's Child Benefit for 2026/27 is £27.05 + £17.90 = £44.95 a week, or £2,337.40 a year. At £70,000 adjusted net income, £10,000 above the £60,000 threshold, the charge claws back 50% of that Child Benefit: £1,168.70.
How does increasing pension contributions reduce the HICBC?
Pension contributions made through salary sacrifice or a net pay arrangement reduce adjusted net income pound for pound, so increasing pension contributions can bring adjusted net income back below £60,000, eliminating the charge entirely while simultaneously boosting retirement savings.
How much pension contribution would eliminate the charge for someone on £70,000?
Bringing adjusted net income from £70,000 down to £60,000 would require an additional £10,000 pension contribution, which for many people is more than a modest top-up — a smaller increase would proportionally reduce, rather than eliminate, the charge.
Is it always worth increasing pension contributions purely to avoid HICBC?
Not necessarily — locking money away in a pension until retirement age has its own trade-offs around access and flexibility, so the decision should weigh the guaranteed HICBC saving and tax relief against the reduced take-home cash and delayed access to those funds.
Does adjusted net income include the personal allowance taper as well?
Yes — adjusted net income is the same measure used for the personal allowance taper above £100,000, so pension contributions that reduce it can help with both the personal allowance taper and the High Income Child Benefit Charge simultaneously for higher earners.
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Related reading
HICBC 2026/27: Why Some Higher Earners Should Opt Back Into Child Benefit
How the High Income Child Benefit Charge works in 2026/27, why some families who opted out should reconsider, and how the charge can now be collected through PAYE instead of Self Assessment.
Paying the High Income Child Benefit Charge Through Your Tax Code Instead of Self Assessment
Since 2025, employed taxpayers can opt to pay the High Income Child Benefit Charge through PAYE via a tax code adjustment, instead of registering for Self Assessment. How the option works and who it suits.
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From April 2027, most unused pension funds will be brought within the scope of Inheritance Tax on death. What's changing, who's affected, and what to consider before then.