Child Benefit High Income Tax Charge Calculator (UK 2026/27)
Calculate the UK High Income Child Benefit Charge (HICBC) for households where one earner exceeds £60,000. Includes the new 2026/27 threshold and tapered repayment.
Child Benefit Tax Charge Guide (UK 2026/27)
What HICBC Is
High Income Child Benefit Charge (HICBC) was introduced in 2013 to claw back Child Benefit from higher earners. From 6 April 2024 the threshold was raised significantly. 2026/27 rules: charge applies when one person in the household has 'adjusted net income' over £60,000 (was £50,000 until April 2024). 1% of Child Benefit is reclaimed for every £200 over £60,000 (was £100). Full loss at £80,000 (was £60,000). Adjusted net income = total taxable income MINUS gross pension contributions, gross Gif
Child Benefit Rates 2026/27
Weekly rates (from 8 April 2024): eldest/only child: £25.60/week (£1,331/year). Each additional child: £16.95/week (£881/year). 2 children: £42.55/week = £2,212/year. 3 children: £59.50/week = £3,094/year. 4 children: £76.45/week = £3,975/year. Tax-free at source — paid into nominated bank account every 4 weeks. Eligibility: child aged under 16, OR under 20 and in approved education/training. Either parent can claim but only ONE parent receives the payment. National Insurance credits: claiming C
Should You Opt Out or Claim?
Three options when HICBC applies: option 1: claim Child Benefit, pay HICBC via Self Assessment. Higher-earning parent files SA, pays HICBC. Receiving parent gets NI credits toward state pension. Net financial result: small admin cost (SA filing). Right choice for most households even at the £80k+ full-loss point because of NI credits. Option 2: claim, opt out of payments. From gov.uk 'Claim Child Benefit, but choose not to be paid'. Receiving parent still gets NI credits. No HICBC because no pay
Reducing HICBC via Pension and Gift Aid
Adjusted net income includes deductions for: gross personal pension contributions (employer contributions don't help). Net contribution × 1.25 = gross (basic rate relief grossed up). Salary sacrifice pension contributions (these reduce gross pay directly — even better). Gift Aid donations (gross figure used). Example: higher earner with £67,000 salary, 2 children. Without action: HICBC = (£7,000 / £200) × Child Benefit × 1% = 35% taper. On £2,212 CB for 2 children: HICBC = £774. Net keep: £1,438
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