💷Tax & FinanceFreeUK-wide

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.

Last updated: 26 May 2026Last reviewed: 26 May 2026How we verify

Updated for the 2026/27 UK tax year.

Calculator coming soon.

Common mistakes to avoid

Forgetting that the Personal Allowance tapers at £1 per £2 above £100,000 income — creates 60% effective marginal rate up to £125,140 (67.5% in Scotland).
Not adding student loan repayment — adds 9% (Plans 1/2/4/5) or 6% (Postgrad) above the plan-specific threshold on top of tax + NI.
Assuming Scottish bands match rUK — Scotland has 6 bands (19/20/21/42/45/48%) with the higher rate kicking in at £43,663 (not £50,270).
Using gross figures for pension contributions when sacrificed via payroll — salary sacrifice reduces taxable income at source, simplifying the maths.

Sources & references

gov.uk — Income Tax rates and Personal Allowances
gov.uk — National Insurance rates
gov.uk — Capital Gains Tax rates
gov.uk — Inheritance Tax
gov.uk — VAT rates
CalcHub Methodology — how we calculate and cross-check figures

Frequently Asked Questions

What is the HICBC threshold for 2026/27?

The High Income Child Benefit Charge starts at £60,000 adjusted net income. The charge is 1% of Child Benefit received per £200 of income above £60,000, reaching 100% (full clawback) at £80,000. Below £60,000, no HICBC applies regardless of how much Child Benefit you receive.

How is adjusted net income calculated for HICBC?

Adjusted net income = total taxable income (salary + bonuses + benefits-in-kind + rental income + savings interest + dividends) minus personal pension contributions paid under the relief-at-source method (multiplied by 100/80 to gross up) minus Gift Aid donations (multiplied by 100/80). Employer pension contributions via salary sacrifice reduce your contractual salary and therefore your employment income directly — they reduce adjusted net income at source rather than as a deduction.

Can salary sacrifice pension reduce my HICBC?

Yes — this is the most efficient method. Salary sacrifice reduces your contractual gross salary, which directly reduces employment income and therefore adjusted net income. Every £1 of pension sacrifice on a salary of, say, £70,000 saves: (1) 40% income tax, (2) 2% employee NI (above £50,270), and (3) recovers 1% of Child Benefit per £200 of reduction. The combined saving rate on the marginal pound sacrificed between £60k–£80k can exceed 55%.

Show 7 more questions

What are the 2026/27 Child Benefit rates?

For 2026/27, Child Benefit is £27.05 per week for the eldest or only qualifying child and £17.90 per week for each additional qualifying child. Annual equivalents: first child £1,406.60, each additional child £930.80. A family with 3 children receives £27.05 + £17.90 + £17.90 = £62.85/week = £3,268.20/year before any HICBC clawback.

Does HICBC apply to the lower earner in a household?

HICBC is assessed on the HIGHEST earner in the household (if both partners earn over £60,000, the one with higher income is subject to the charge). It does not matter who claims Child Benefit or whose income pays for the children. A household where both partners earn £55,000 each (total £110,000) pays NO HICBC — because neither individual exceeds the £60,000 threshold. Only one partner earning £61,000 while the other earns £0 would trigger HICBC.

Should I still claim Child Benefit even if I will pay it all back?

Usually yes — for two reasons: (1) Child Benefit claim protects NI National Insurance Credits for the partner not working or earning below the NI threshold, crediting qualifying years toward the State Pension. (2) It automatically registers your child for a National Insurance number at age 16. If HICBC would fully claw back the benefit and you do not want the Self Assessment obligation, you can opt out of receiving Child Benefit payments while keeping the NI credits by completing the opt-out form on gov.uk.

How do I pay HICBC if my income changes during the year?

HICBC is collected through Self Assessment. If your adjusted net income exceeds £60,000 in any tax year, you must file a Self Assessment return and declare the charge. If your income fluctuates year to year (e.g. bonus-heavy), the charge varies accordingly. You can use payments on account to spread the bill across the year, or adjust them if income drops. HMRC can also collect HICBC through your PAYE tax code — a convenient option to avoid a lump-sum SA bill in January.

What counts as a qualifying child for Child Benefit?

A qualifying child must be under 16, or under 20 if they are in approved education or training (A-levels, Scottish Highers, NVQs up to Level 3, or certain traineeships). The child must normally live with you (or you must be responsible for them). Adopted children and children you are looking after as part of a kinship arrangement may qualify. There is no limit on the number of qualifying children, but as of 2023, the two-child limit restricts the Child Tax Credit element — Child Benefit itself remains payable for all qualifying children.

Is HICBC going to change to household income?

The government has consulted on moving HICBC to a household income basis (so that two earners at £55k each would face the charge) rather than the current individual income basis. As of 2026/27, no change has been implemented and the charge remains individual-based. If and when a household income basis is introduced, the threshold and taper will likely be adjusted to maintain broadly similar revenue yield. Check gov.uk for the latest policy announcements.

Does Gift Aid reduce adjusted net income for HICBC?

Yes. Gift Aid donations reduce your adjusted net income for HICBC purposes. The gross value of Gift Aid donations (donation amount divided by 0.80) is deducted from total income to arrive at adjusted net income. A £800 Gift Aid donation grosses up to £1,000 and reduces adjusted net income by £1,000. Charitable giving and pension contributions can be combined to manage adjusted net income strategically.

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Disclaimer: All results are estimates for guidance only and do not constitute financial, tax or legal advice. Always consult a qualified professional.

About the author

Emma Clarke

UK Tax Writer

Emma Clarke has been writing about UK personal tax since 2018, with a particular focus on Self Assessment, PAYE coding and the practical mechanics of how HMRC actually applies the rules to ordinary salaries. Her work concentrates on translating the dense language of HMRC manuals and Finance Act schedules into worked examples that show, pound by pound, how income tax and National Insurance reduce a gross salary to the figure that lands in a UK bank account. Emma covers the full PAYE lifecycle: tax codes (1257L, BR, K codes, emergency codes), the Marriage Allowance, the High Income Child Benefit Charge, salary sacrifice arrangements and their effect on pensionable pay, the Apprenticeship Levy, and the differences between the rUK and Scottish income-tax regimes. She is particularly interested in the edge cases that catch PAYE employees out — the £100,000 personal-allowance taper, the 60% effective marginal rate it creates, and the interaction between student-loan plans and pension contributions. Every figure in Emma's articles is verified against the current HMRC rates pages and worked through a Self Assessment calculation by hand before publication. She writes to CalcHub's editorial standards: primary-source citations, plain English, no promotional language, and clear "this is general information, not financial advice" disclaimers where appropriate.

Personal-finance writer since 2018
UK tax specialism — PAYE, Self Assessment, National Insurance
Writes to CalcHub editorial standards (primary-source citation, annual review)

income-taxself-assessmentpayenational-insurancetax-codessalary-sacrificestudent-loansscottish-income-tax

💷Tax & FinanceFreeUK-wide

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.

Last updated: 26 May 2026Last reviewed: 26 May 2026How we verify

Updated for the 2026/27 UK tax year.

Calculator coming soon.

Common mistakes to avoid

Forgetting that the Personal Allowance tapers at £1 per £2 above £100,000 income — creates 60% effective marginal rate up to £125,140 (67.5% in Scotland).
Not adding student loan repayment — adds 9% (Plans 1/2/4/5) or 6% (Postgrad) above the plan-specific threshold on top of tax + NI.
Assuming Scottish bands match rUK — Scotland has 6 bands (19/20/21/42/45/48%) with the higher rate kicking in at £43,663 (not £50,270).
Using gross figures for pension contributions when sacrificed via payroll — salary sacrifice reduces taxable income at source, simplifying the maths.

Sources & references

gov.uk — Income Tax rates and Personal Allowances
gov.uk — National Insurance rates
gov.uk — Capital Gains Tax rates
gov.uk — Inheritance Tax
gov.uk — VAT rates
CalcHub Methodology — how we calculate and cross-check figures

Frequently Asked Questions

What is the HICBC threshold for 2026/27?

How is adjusted net income calculated for HICBC?

Can salary sacrifice pension reduce my HICBC?

Show 7 more questions

What are the 2026/27 Child Benefit rates?

Does HICBC apply to the lower earner in a household?

Should I still claim Child Benefit even if I will pay it all back?

How do I pay HICBC if my income changes during the year?

What counts as a qualifying child for Child Benefit?

Is HICBC going to change to household income?

Does Gift Aid reduce adjusted net income for HICBC?

Related Calculators

Take-Home Pay Calculator

Calculate your net salary after income tax, National Insurance and student loan deductions.

Income Tax Calculator

Work out how much income tax you owe using the latest 2025/26 UK tax bands.

Salary Sacrifice Calculator

Calculate how much tax and National Insurance you save by making salary sacrifice contributions to a pension, cycle to work scheme or EV car scheme.

National Insurance Calculator

Calculate your National Insurance contributions for 2025/26.

From the blog

Latest from the blog

All articles →

Disclaimer: All results are estimates for guidance only and do not constitute financial, tax or legal advice. Always consult a qualified professional.

About the author

Emma Clarke

UK Tax Writer

Personal-finance writer since 2018
UK tax specialism — PAYE, Self Assessment, National Insurance
Writes to CalcHub editorial standards (primary-source citation, annual review)

income-taxself-assessmentpayenational-insurancetax-codessalary-sacrificestudent-loansscottish-income-tax

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High Income Child Benefit Charge Calculator

Common mistakes to avoid

Sources & references

Frequently Asked Questions

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Common mistakes to avoid

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Frequently Asked Questions

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