Child Benefit is paid regardless of income, but the tax system can take some or all of it back from higher earners. This guide explains who pays the High Income Child Benefit Charge, how the amount is calculated and the routes for paying it.
What is the High Income Child Benefit Charge?
The High Income Child Benefit Charge is an income tax charge, not a cut to the benefit itself. The payments continue, and HMRC recovers part or all of them through tax. According to GOV.UK, the charge applies where an individual’s adjusted net income is over £60,000, for tax years starting from 2024 to 2025. For earlier years up to and including 2023 to 2024, the threshold was £50,000.
The word “individual” matters. The charge is assessed on one person’s income, not on the household total. Two parents each earning £55,000 have a combined income of £110,000 and owe nothing, while a family with one earner on £70,000 and a partner on no income faces a charge. Because income is tested individually, how earnings are structured can change the outcome, a theme explored in our look at how higher earners are rethinking pay structure.
How much is Child Benefit worth?
According to GOV.UK’s Child Benefit rates page, the weekly rate is £27.05 for the eldest or only child and £17.90 for each additional child. GOV.UK says the benefit is usually paid every four weeks. You can claim if you are responsible for a child under 16, or under 20 if they stay in approved education or training, and only one person can claim for each child.
The illustrative arithmetic below turns those weekly rates into yearly amounts (52 weeks):
| Family | Weekly total | Yearly total |
|---|---|---|
| One child | £27.05 | £1,406.60 |
| Two children | £27.05 + £17.90 = £44.95 | £2,337.40 |
| Three children | £44.95 + £17.90 = £62.85 | £3,268.20 |
These are the amounts the charge can claw back, so they set the ceiling on what a family could repay.
How does the sliding scale work?
GOV.UK says that from the 2024 to 2025 tax year you repay 1% of your Child Benefit for every £200 of income over £60,000. At £80,000 you repay all of it. That is a 20,000-pound band divided by £200, which gives 100 steps of 1%.
GOV.UK gives its own example: someone on £70,000 is £10,000 over the threshold, so repays 50% of the Child Benefit. The table applies the same method to a family with two children, using the yearly total of £2,337.40 above. All figures are illustrative.
| Adjusted net income | Amount over £60,000 | Share repaid | Charge (two children) |
|---|---|---|---|
| £60,000 | £0 | 0% | £0 |
| £65,000 | £5,000 | 25% | £584.35 |
| £70,000 | £10,000 | 50% | £1,168.70 |
| £75,000 | £15,000 | 75% | £1,753.05 |
| £80,000 or more | £20,000 or more | 100% | £2,337.40 |
Within the band, each extra £1,000 of income adds a 5% share, which for this family is about £116.87 of extra charge. That sits on top of ordinary income tax, which is why the band is often described as carrying a higher effective marginal rate than the headline tax rates suggest.
What counts as adjusted net income?
Adjusted net income is not the same as salary. GOV.UK describes it as total taxable income before any Personal Allowances, less certain tax reliefs. It includes savings interest and dividends as well as pay, which is why the rising cash returns discussed in our guide to tax on savings interest can matter to a family near the threshold.
It is calculated after some reliefs, including pension contributions and Gift Aid. GOV.UK’s guidance on adjusted net income sets out the rules:
- Gift Aid: for each £1 donated, you can deduct £1.25 from net income, being the donation plus basic-rate tax of £0.25.
- Pension contributions paid without tax relief: the full contribution reduces net income.
- Pension contributions where the provider already gave basic-rate relief: you deduct £1.25 for every £1 you paid.
GOV.UK’s worked example has a person with £70,000 of taxable income, £4,750 of pension contributions made without tax relief and £1,000 of Gift Aid donations. Net income becomes £65,250, and after the £1,250 Gift Aid deduction, adjusted net income is £64,000 (£70,000 − £4,750 − £1,250).
A further illustration, using the relief-at-source rule: someone with £68,000 of taxable income who pays £4,000 into such a pension has a £5,000 deduction (£4,000 × 1.25). Adjusted net income is £63,000, which is £3,000 over the threshold and so a 15% charge (£3,000 ÷ £200 = 15 steps). Without the contribution, the figure would be £8,000 over and a 40% charge. This is arithmetic, not a recommendation, and pension decisions have wider consequences, as explained in our article on the Budget and pensions and ISAs.
Which parent pays when both earn over the threshold?
GOV.UK says that if you and your partner are both over the threshold, the higher earner pays the charge. The charge falls on the person with the higher income even if the other parent is the one receiving the payments. For this reason the question of who claims is less important to the tax than the question of which partner has the higher adjusted net income.
How is the charge paid?
There are two routes, according to GOV.UK.
Self Assessment
You must use Self Assessment if you need to send a tax return for another reason, such as self-employment or savings interest. You must also use it if payment is later than 31 January in the year after the tax year. GOV.UK’s example: for the tax year starting 6 April 2025, a payment made after 31 January 2027 must go through Self Assessment.
PAYE
Otherwise, the charge can be collected through PAYE. GOV.UK says you can register using HMRC’s online service, possibly proving your identity with photo ID, and you cannot save progress partway, so have these details ready:
- your adjusted net income;
- your partner’s adjusted net income, if you have a partner;
- the National Insurance number of any partner who received Child Benefit in the last tax year;
- dates of any relationships with partners who received Child Benefit.
Once registered, HMRC sends a new tax code to you and your employer, or to your pension provider. GOV.UK says you need do nothing further unless your circumstances change. Anyone who used Self Assessment only for this charge can phone HMRC to leave Self Assessment and register for PAYE.
Can you stop the payments instead?
Yes. GOV.UK says you can choose not to receive Child Benefit payments. You remain registered, do not pay the charge, and keep your National Insurance credits and your child’s National Insurance number.
Those credits are worth understanding. According to GOV.UK, if you claim and your child is under 12, you receive National Insurance credits automatically, which count towards your State Pension and prevent gaps when you are not working or do not earn enough to pay contributions. This is why GOV.UK advises making a claim even if you do not want the payments. A partner can apply to transfer the credits if you do not need them. For more on why the contribution record matters, see our guide to checking and filling State Pension gaps.
A family whose income sits close to £80,000 may find the sums for opting out simple, because the charge would cancel out the benefit. For those between £60,000 and £80,000, the choice involves weighing the payment received against the tax repaid, and the outcome depends on individual circumstances.
Why the charge draws criticism, and what it does not change
This section is analysis, not reporting. The charge is a means test delivered through the tax code, and its main design features create the debate: it looks at one person’s income rather than the household’s, it uses a fairly narrow 20,000-pound band to withdraw the benefit, and it relies on families to notice and act. The threshold rose from £50,000 to £60,000 from 2024 to 2025, but the principle that the same family income can produce different outcomes depending on who earns it remains.
None of this alters the basics: the benefit is available to claim, the charge is an income tax matter, and the figures above are the rules as published by GOV.UK. Rates and thresholds can be revised at fiscal events, so it is worth checking the latest guidance each tax year.
Conclusion: know your adjusted net income before you decide
The High Income Child Benefit Charge turns on a single number, the higher earner’s adjusted net income, and a simple sliding scale of 1% for each £200 above £60,000, reaching 100% at £80,000. Knowing how pension contributions, Gift Aid, savings interest and dividends move that figure, and which of PAYE or Self Assessment applies, helps families see their position clearly. Claiming even when opting out of payments preserves the National Insurance credits and the child’s National Insurance number.
This article is general information, not personalised financial advice. Tax rules, thresholds and rates change, so check current official guidance.
Sources: GOV.UK
