# High Income Child Benefit Charge for 2025/26 Explained

Understand the High Income Child Benefit Charge (HICBC) rules, thresholds, and calculations for the 2025/26 tax year to manage your liability and Self Assessment returns.

**Published:** 2026-07-05  
**Updated:** 2026-07-05  
**Source:** https://aztajournal.com/gb/high-income-child-benefit-charge-guide

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> The High Income Child Benefit Charge claws back child benefit when an individual's adjusted net income exceeds £60,000. It is fully repaid at £80,000. For the 2025/26 tax year, you must understand your status and liability to manage returns effectively.

The High Income Child Benefit Charge is a UK tax charge applied to households where at least one parent earns above a set threshold while receiving Child Benefit. To avoid penalties, you must calculate your adjusted net income and report any liability to HM Revenue and Customs by the statutory deadlines.

## Key Takeaways: High Income Child Benefit Charge 2025/26

| Feature | Threshold / Rule | Details |
| --- | --- | --- |
| Start threshold | £60,000 | Taper charge begins at 1% for every £200 of income above this level. |
| Full recovery threshold | £80,000 | The charge equals 100% of the Child Benefit received by the household. |
| Liability basis | Higher individual income | The partner with the higher income is liable, regardless of who claims. |
| Payment options | Self Assessment or PAYE | Pay via a tax return or through an electronic PAYE tax code change. |

## How does the High Income Child Benefit Charge work for 2025/26?

The High Income Child Benefit Charge works by clawing back Child Benefit payments through the tax system when an individual earns over £60,000.

Under the rules established by the Finance (No.2) Act 2024, the tax charge applies if you or your partner have an Adjusted Net Income above £60,000 and one of you receives Child Benefit. The partner with the higher income is legally liable to pay the charge, even if they are not the person who made the original claim or received the cash payments.

The tax clawback operates on a sliding scale. Responsibility is calculated on individual income rather than combined household income, meaning one earner's salary determines the household's overall tax liability.

## What is Adjusted Net Income (ANI) for HICBC?

Adjusted Net Income is your total taxable income minus specific deductions like pension contributions and Gift Aid. It represents the final figure HM Revenue and Customs uses to determine your tax rate and eligibility for personal allowances.

To calculate your Adjusted Net Income, you must declare your total income and apply specific deductions as follows:

- Add gross salary and wages from employment.
- Add taxable profits from self-employment.
- Add state benefits, rental income, and investment dividends.
- Add taxable benefits in kind, such as company cars or private medical insurance.
- Deduct grossed-up private pension contributions.
- Deduct grossed-up charitable donations made through Gift Aid.

## Is the HICBC based on household income or individual income?

The tax charge remains strictly based on individual income, meaning only the higher earner's personal income is assessed.

The UK government formally abandoned plans to reform the tax system to a household-income basis in the Autumn Budget of 2024. Consequently, individual assessment continues to govern the charge.

This individual focus creates a split-income anomaly in the UK tax system. For instance, a household where two partners each earn £59,000 (totalling £118,000) faces no charge, while a household with a single earner making £80,000 must repay the benefit in full.

## How do I calculate the High Income Child Benefit Charge?

To calculate the charge, apply a 1% tax rate for every £200 of Adjusted Net Income above the £60,000 threshold.

Under the Income Tax (Earnings and Pensions) Act 2003, specifically sections 681B to 681C, the taper increases progressively until it reaches 100% at £80,000. You can calculate your liability by following these steps:

1. Subtract £60,000 from your total Adjusted Net Income.
2. Divide the remaining amount by £200 to determine your percentage rate.
3. Multiply this percentage rate by the total Child Benefit received during the tax year.
4. Round down the final figure to the nearest whole pound.

For example, in a household with three children receiving £3,148 in Child Benefit where the higher earner's ANI is £70,000, the calculation is (£70,000 - £60,000) divided by £200, which equals 50%. The resulting tax charge is 50% of the £3,148 received, making the final liability £1,574.

## How do I pay the High Income Child Benefit Charge?

You can pay the charge either by submitting an annual Self Assessment tax return or by requesting an adjustment to your PAYE tax code.

Taxpayers can choose between two main routes depending on their employment status and filing preferences:

| Payment Option | Process | Deadlines & Key Details |
| --- | --- | --- |
| Self Assessment | Register with HMRC and file a tax return manually or online. | The submission and payment deadline is 31 January 2027 for the 2025/26 tax year. |
| PAYE Code Adjustment | HMRC adjusts your tax code to collect the money directly from your salary. | You must report income via HMRC's online service. This is only available if you owe under £3,000. |

## Why you should claim Child Benefit even if you opt out of payments

Registering for Child Benefit without taking the cash payments protects your state pension rights and secures automatic National Insurance documentation for your child.

By filling out the claim form and choosing the 'zero payment' option, the non-earning or lower-earning parent continues to receive National Insurance credits. These credits are critical for building the 35 qualifying years needed to receive the full UK State Pension.

Additionally, registering ensures your child is automatically registered and issued a National Insurance number. This number is sent to them shortly before their 16th birthday, avoiding administratively complex manual application processes later in life.

### What is the threshold for the High Income Child Benefit Charge in 2025/26?

The threshold for the 2025/26 tax year starts at £60,000 of Adjusted Net Income. The taper increases by 1% for every £200 over this threshold, reaching a 100% tax charge when your income hits £80,000.

### What happens if both partners earn over £60,000?

If both partners earn over £60,000, the partner with the higher Adjusted Net Income is liable for paying the tax charge. The household is not taxed twice; only the highest individual earner must declare and pay the charge.

### Can I reduce my Adjusted Net Income to avoid the child benefit tax charge?

Yes, you can reduce your Adjusted Net Income by making gross pension contributions or donating to charity through Gift Aid. These allowable deductions lower your net income figure, which can bring you below the £60,000 threshold or reduce your taper percentage.

### What is the deadline for filing a Self Assessment return for HICBC 2025/26?

The deadline for filing your online Self Assessment tax return and paying the charge for the 2025/26 tax year is 31 January 2027. You must register for Self Assessment by 5 October 2026 if you have not filed a return before.