Child Benefit Tax Charge Calculator

Child Benefit is paid to anyone responsible for a child, £26.05 a week for the eldest and £17.25 for each additional child in 2025/26. But if you or your partner has an adjusted net income over £60,000, the High Income Child Benefit Charge (HICBC) reclaims 1% of the benefit for every £200 of income above £60,000. By £80,000 the charge equals 100% of the benefit, you effectively keep none of it.

The charge looks at the highest individual income, not combined household income. So a couple each earning £55,000 (£110,000 between them) keeps all the benefit, while a single earner on £75,000 loses most of it. It's widely seen as unfair, but it's the rule, and it means how income is split between partners matters.

The charge is based on adjusted net income, your income after pension contributions and Gift Aid. So paying into a pension can bring you back under £60,000 and remove the charge, while also saving Income Tax and building your pension. For someone just over the threshold with children, a pension contribution can be one of the most rewarding pounds they spend.

Always claim Child Benefit, even if you expect to pay it all back. Claiming protects your State Pension via NI credits (for a parent not working) and gives your child a National Insurance number automatically. You can choose to opt out of payments to avoid the charge and the Self Assessment hassle, while keeping the NI credits. If you do receive it and are caught by the charge, you must register for Self Assessment to pay it.

• Not claiming at all. You lose valuable NI credits towards your State Pension. Claim, even if opting out of payments.
• Forgetting to register for Self Assessment. If caught by the charge and receiving payments, you must file, penalties apply if you don't.
• Overlooking pension relief. A pension contribution can remove the charge and save tax, many miss this.
• Assuming it's household income. It's the highest individual income that counts, which can feel unfair but changes the strategy.