High Income Child Benefit Charge

The High Income Child Benefit Charge (HICBC) affects families receiving Child Benefit when one parent’s adjusted net income exceeds £60,000 in 2024–25. Adjusted net income includes all taxable earnings, pensions, dividends and benefits in kind, less reliefs like pension contributions. For incomes between £60,000 and £80,000, the charge is 1% of the total benefit received for every £200 of income over £60,000. At £80,000 or more, the charge equals 100% of the benefit paid.

You must report and pay the charge through Self Assessment. If your adjusted net income is over £50,000, HMRC may ask you to file even if you otherwise wouldn’t need to. You can opt out of Child Benefit payments to avoid the charge, but this forfeits National Insurance credits that count toward your State Pension. 

Alternatively, you can continue receiving payments and settle the charge after 31 January following the end of the tax year. To reduce the charge, consider making additional pension contributions or Gift Aid donations before 5 April, which lower your adjusted net income and potentially preserve some Child Benefit entitlement.