Child Benefit Tax Calculator
Calculate if you'll lose child benefit due to high income and how much you'll owe back.
Check if the High Income Child Benefit Charge means you should claim child benefit.
This is the adjusted net income of the higher earning parent/carer for the tax year.
How the High Income Child Benefit Charge Works
Child Benefit pays £26.05/week for the first child and £17.25/week per additional child in 2026/27 - around £1,355/year for one child or £2,252/year for two. The catch is the High Income Child Benefit Charge (HICBC). If the higher-earning partner has adjusted net income above £80,000 (raised from £60,000 from April 2026), the benefit is clawed back at 1% per £200 of income above the threshold. By £100,000 income, the entire benefit is clawed back.
Crucially, the threshold applies to whoever earns more in the household, not combined income. A couple where both earn £55,000 (combined £110,000) keeps the full benefit. A single parent earning £80,001 or a couple where one partner earns £80,001 starts losing it. This produces the perverse outcome of single-earner households on £100,000 paying full HICBC while dual-earner households on £160,000 pay none.
Why You Should Still Claim, Even If You Lose the Benefit
If you opt out entirely to avoid HICBC, you lose two things: the cash benefit (which you would lose anyway through HICBC) and National Insurance credits for the parent who is not earning. The NI credits matter for State Pension entitlement. A non-earning parent looking after a child under 12 needs Child Benefit registration to receive automatic NI credits for those years - missing them costs £325/year of State Pension for each missed year, which compounds across decades.
The right move for high earners is to claim Child Benefit, then either pay the HICBC through self-assessment, or tick the box that says 'I do not want to receive Child Benefit but I do want my NI record protected'. The latter gets the credits without the cash, avoiding the self-assessment hassle. Salary sacrifice into a pension is the other big lever - it reduces adjusted net income, so a £90,000 earner with £15,000 of pension contributions counts as £75,000 for HICBC and keeps the full benefit. Use the [UK Tax Calculator](/uk-tax-calculator) to see the wider tax implication.
Child Benefit After HICBC by Income (2 Children, 2026/27)
| Higher Earner Income | Gross Benefit | HICBC | Net Benefit |
|---|---|---|---|
| £75,000 | £2,252 | £0 | £2,252 |
| £85,000 | £2,252 | £563 | £1,689 |
| £90,000 | £2,252 | £1,126 | £1,126 |
| £95,000 | £2,252 | £1,689 | £563 |
| £100,000+ | £2,252 | £2,252 | £0 |
Frequently Asked Questions
What counts as adjusted net income for HICBC?
Adjusted net income is total taxable income minus pension contributions, gift aid donations and trading losses. Crucially, it includes employer-provided benefits in kind (company car, private medical) that you might not think of as income. The figure is normally close to your P60 total but can differ if you have other income streams. Pension contributions via salary sacrifice reduce the figure most reliably; relief at source contributions reduce it through self-assessment.
Did the threshold actually change in April 2026?
Yes. The HICBC threshold rose from £60,000 to £80,000 from April 2026, and the full clawback completes at £100,000 instead of £80,000. The taper rate is now 1% per £200 (instead of 1% per £100), spreading the clawback across a £20,000 band rather than the previous £10,000 band. Couples earning between £60k and £80k who used to pay HICBC now keep the full benefit.
How do I pay the HICBC?
Through self-assessment. Register for self-assessment by 5 October following the tax year you crossed the threshold. The charge is added to your tax bill and paid by 31 January (with a payment on account by 31 July if your tax bill is over £1,000). Many high earners get caught out the first year because they have not done self-assessment before. Set a reminder for the registration deadline - HMRC fines for late registration are £100 plus interest on unpaid tax.
Should I opt out if I will definitely lose the lot?
Generally no, even if your income is comfortably above £100,000. The non-earning partner's National Insurance credits (worth around £325/year of future State Pension per qualifying year) are worth claiming via the 'no payment, just NI credits' option. The only case for opting out entirely is if both partners are working and accruing NI through employment - then the credits are surplus and the self-assessment hassle outweighs the benefit.
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