What is High Income Child Benefit Charge (HICBC)?

Full Definition

The High Income Child Benefit Charge (HICBC) is a Self Assessment tax charge that recovers Child Benefit payments when the highest earner in a household has an adjusted net income above £60,000. The threshold was raised from £50,000 to £60,000 in April 2024. The charge tapers: for every £200 of adjusted net income above £60,000, 1% of the Child Benefit received is clawed back. The charge reaches 100% at £80,000, meaning above this point the family effectively keeps no Child Benefit in net terms. It is the higher earner who pays the charge — not the parent who actually receives Child Benefit — even if they are not the claiming parent or do not live in the same household. Families can avoid the complexity by opting out of receiving Child Benefit entirely, but this is not always advisable because Child Benefit receipt protects NI credits (especially for parents not working) and preserves the child's future entitlement to a National Insurance number. From April 2024, HMRC confirmed that NI credits are now preserved even when the charge equals 100% of the benefit, resolving a previous anomaly. Adjusted net income can be reduced by making pension contributions or Gift Aid donations, which can bring the charge down or eliminate it. The charge must be declared via Self Assessment.

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