The High Income Child Benefit Charge is a tax that repays Child Benefit from households with higher incomes. It applies to Child Benefit already in payment, so it works as a clawback rather than a separate benefit. The charge is collected through the income tax system, either through your PAYE tax code or through Self Assessment, according to GOV.UK (HMRC) guidance dated 2026.
What is the High Income Child Benefit Charge?
The charge as a repayment
The charge is a repayment of Child Benefit. Child Benefit is paid first, and the charge then recovers part or all of it from a household where at least one person’s income is over the threshold. Because the charge is calculated and collected through tax, the benefit is not simply stopped at the point of payment.
Clawback of existing awards
The charge acts on Child Benefit awards that are already active. Once it applies, you have a choice. You can keep receiving Child Benefit and pay the charge, or you can opt out of payments and not pay it. This choice is what makes the charge a clawback on existing awards: the household decides whether the benefit is paid and then taxed back, or not paid at all.
Link with the income tax system
The charge is handled inside the income tax system rather than by the benefits system.
Source: GOV.UK (HMRC), 2026.
Who has to pay the charge?
The High Income Child Benefit Charge is not limited to the person who receives Child Benefit. Under the HMRC rules, liability depends on who has individual income above the threshold, and on who contributes to the child’s upkeep. Three situations are covered.
Claimant or partner with income above the threshold. The charge can apply if you or your partner receives Child Benefit and at least one of you has an individual income above the threshold. The test is applied to each person’s own income, so a partner who earns below the threshold does not trigger the charge on their own.
Non-claimant contributing an equal share. The charge can also apply if someone else receives Child Benefit for a child who lives with you, and you contribute at least an equal amount to that child’s upkeep. Living with the child and sharing its costs at that level is what brings you into scope, even though you do not make the claim yourself. Contributions below that level do not create liability under this rule.
Higher earner pays when both partners are above the threshold. If both partners have individual income above the threshold, only the higher earner pays the charge. The rule assigns liability to one person per household, so the couple does not pay twice.
| Situation | Who is liable |
|---|---|
| Claimant or partner above the threshold, at least one of you | The person whose income is above the threshold |
| Non-claimant living with the child and contributing at least an equal amount | The non-claimant, if their income is above the threshold |
| Both partners above the threshold | The higher earner |
Source: GOV.UK (HMRC), 2026.
How is adjusted net income worked out?
Adjusted net income is the figure HMRC uses to measure your income for the High Income Child Benefit Charge. It is not the same as your gross salary or your take-home pay. It starts from your income and then adjusts it, so two households with the same salary can end up with different adjusted net income figures depending on their savings, dividends and reliefs.
The calculation works in two directions. First, savings interest and dividends are added to the total, so they count toward the figure even though they are not part of your salary. Second, certain reliefs are subtracted. Pension contributions and Gift Aid donations reduce the figure, so a year with these payments produces a lower number than your gross income.
In plain text, the method is:
adjusted net income = income (including savings interest and dividends) minus reliefs (such as pension contributions and Gift Aid)
| Item | Effect on adjusted net income |
|---|---|
| Income (your starting figure) | Starting point of the calculation |
| Savings interest | Added |
| Dividends | Added |
| Pension contributions | Deducted |
| Gift Aid donations | Deducted |
To work out your own figure, gather the records for each item in the table for the tax year in question: statements showing savings interest, dividend records, pension contribution statements and Gift Aid declarations. Then apply the two steps above in order. Because the rules are set out in GOV.UK (HMRC) guidance, check the guidance for your specific tax year before relying on your result, as the source is dated 2026.
How much is the charge at each income level?
The High Income Child Benefit Charge starts at a threshold of £60,000 for tax years starting from 2024 to 2025. For tax years up to and including 2023 to 2024, the threshold was £50,000. Above the threshold, the charge takes back a share of your Child Benefit that rises in steps, and you repay all of it at £80,000 or more.
From 2024 to 2025 onward, the rate is 1% of your Child Benefit for every £200 of income over £60,000. Each full £200 band therefore adds one percentage point to the share repaid. The table below applies that rule to sample income levels. These percentages are calculated from the stated rule, not taken from a separate published table.
| Income | Share of Child Benefit repaid |
|---|---|
| Up to £60,000 | 0% |
| £65,000 | 25% |
| £70,000 | 50% |
| £75,000 | 75% |
| £80,000 or more | 100% |
To estimate your own position, take the amount above £60,000 and divide it by £200. For example, £10,000 above the threshold gives 50 bands, so 50% of your Child Benefit is repaid.
The earlier rule worked differently. Up to and including 2023 to 2024, the rate was 1% for every £100 over £50,000. Applying the same arithmetic to that rule, £55,000 gave 50% repaid, and the full charge was reached at £60,000. Comparing the two rules shows that the 2024 to 2025 change both raised the threshold and widened the band size, so the charge builds more slowly across the same income range.
How do you pay it: PAYE or Self Assessment?
The High Income Child Benefit Charge can be paid through your PAYE tax code or through Self Assessment. The route depends on whether you already need to file a Self Assessment return for another reason and on when you make the payment.
| Situation | Payment route |
|---|---|
| No other reason to file a return, and payment is made through your tax code | PAYE tax code |
| You must file a Self Assessment return for another reason | Self Assessment |
| Payment is made after 31 January following the end of the tax year | Self Assessment |
| 2025 to 2026 tax year, payment made after 31 January 2027 | Self Assessment |
Collection through the PAYE tax code
PAYE is the system your employer uses to deduct Income Tax from your pay. When the charge is collected this way, it is handled through your tax code rather than through a separate return. This route applies when you have no other reason to file a return and you pay by 31 January following the end of the tax year.
When Self Assessment is required
Self Assessment is the route to use in two cases:
- You must file a Self Assessment return for another reason, such as self-employment income or other income that requires a return.
- You want to pay after 31 January following the end of the tax year.
In either case, the charge is reported and paid through your Self Assessment return, not through your tax code.
Late payment for the 2025 to 2026 tax year
For the 2025 to 2026 tax year, payment after 31 January 2027 must go through Self Assessment. There is no PAYE option for that payment, even if you otherwise have no return to file.
Source: GOV.UK (HMRC), 2026.
Should you opt out of Child Benefit payments?
Opting out is a choice between two routes when the High Income Child Benefit Charge can apply to you. If you opt out, Child Benefit payments stop and you do not pay the charge. If you keep receiving payments, you keep the money but repay the charge. The decision depends on the value of the payments compared with the amount you would repay, and on the National Insurance credits you keep either way.
Opting out stops payments but does not end your registration. The table below shows how each option compares.
| Feature | Keep receiving payments | Opt out of payments |
|---|---|---|
| Child Benefit paid | Yes | No |
| High Income Child Benefit Charge | Payable | Not payable |
| Registration for Child Benefit | Kept | Kept |
| National Insurance credits toward the State Pension | Continue while registered | Continue while registered |
Because National Insurance credits continue while you stay registered, opting out does not reduce your State Pension credits. Your child also receives a National Insurance number automatically near age 16, whichever option you choose.
Weighing the two options comes down to a simple comparison:
- Work out your adjusted net income for the tax year. It includes savings interest and dividends, and it is calculated after reliefs such as pension contributions and Gift Aid, but before Personal Allowances.
- Compare the Child Benefit you would receive with the charge you would repay.
- If the charge would absorb most or all of the payments, compare the two options on GOV.UK, or ask HMRC or a qualified tax adviser about your own situation.
What dates and deadlines matter?
The key date is 31 January after the end of the tax year. Check those dates on GOV.UK before building a payment calendar.
To track the deadline for a given year:
- Identify the tax year the charge relates to, using its label (for example, 2025 to 2026).
- Note the 31 January that falls after that tax year ends. Payment made after that date must go through Self Assessment.
For the 2025 to 2026 tax year, payment after 31 January 2027 must go through Self Assessment. Check other dates and deadlines on GOV.UK.
Frequently asked questions
Can the charge apply if only my partner earns over £60,000?
Yes. The charge can apply when either you or your partner has an individual income over the threshold. If both of you are over it, the higher earner pays.
How much would I repay on a £70,000 income?
The current rule repays 1% of Child Benefit for every £200 above £60,000. At £70,000 you are £10,000 over, which is 50 steps, so 50% of your Child Benefit is repaid. The measure is adjusted net income, after reliefs such as pension contributions and Gift Aid.
Does opting out of payments affect my State Pension?
It does not remove your registration. You keep receiving National Insurance credits toward the State Pension, and your child is given a National Insurance number automatically near age 16. The choice to opt out of payments only stops the money being paid and the charge being owed.
