Key points
- Child Benefit is £27.05 a week for your eldest child and £17.90 for each other child: £2,337.40 a year for two.
- The higher earner pays 1% of it back for every £200 of adjusted net income over £60,000.
- At £80,000 the charge equals the benefit. You can still claim, to protect your State Pension record.
- A pension can cancel the charge. On £70,000 with two children, sacrificing £10,000 into a pension costs you only £4,631.30 of take-home pay.
Work out your own
Add your children under More options to see the charge on your own pay.
Open the take-home pay calculatorHow the charge works
The High Income Child Benefit Charge applies if your adjusted net income, or your partner's, is over £60,000. Whoever earns more pays it. For every £200 of income over £60,000, they pay back 1% of the Child Benefit the household gets. At £80,000 they pay it all back.
It is worked out on income for the whole tax year, and collected through Self Assessment or your tax code.
What the charge is at each income
| Higher earner's income | One child | Two children | Three children |
|---|---|---|---|
| £60,000 | £0.00 | £0.00 | £0.00 |
| £62,000 | £140.66 | £233.74 | £326.82 |
| £65,000 | £351.65 | £584.35 | £817.05 |
| £70,000 | £703.30 | £1,168.70 | £1,634.10 |
| £75,000 | £1,054.95 | £1,753.05 | £2,451.15 |
| £80,000 | £1,406.60 | £2,337.40 | £3,268.20 |
Child Benefit for a full year: £1,406.60 for one child, £2,337.40 for two, £3,268.20 for three.
Using a pension to reduce it
Pension contributions through salary sacrifice or a net pay scheme lower your adjusted net income, and so does a personal pension contribution or Gift Aid, grossed up. On £70,000 with two children, the charge is £1,168.70. Sacrificing £10,000 into a pension removes it, puts £10,000.00 into your pension, and lowers your take-home pay by only £4,631.30.
Claim even if you will pay it all back
A Child Benefit claim gives the parent who claims National Insurance credits for each year their youngest child is under 12, which count towards the State Pension. It also gets your child a National Insurance number automatically. If the charge would cancel the benefit, you can claim and choose not to be paid.
Bottom line
The charge depends on the higher earner's income alone, not on your household's. Between £60,000 and £80,000, it adds a lot to the tax on each extra pound, so it is worth checking whether a pension contribution would bring your income down.
Tips
- Adjusted net income includes bonuses, savings interest and rental profit, not just your salary.
- Even if the charge would take back all of your Child Benefit, claim it and opt out of the payments: the claim gives a parent at home National Insurance credits.
- If you pay the charge through Self Assessment, register in time: the deadline for a new tax year is 5 October after it ends.
This guide explains the rules; it is not personal financial advice.