High Income Child Benefit Charge (HICBC) 2026-27
Calculator, thresholds, worked examples, and how to pay or reduce the charge.
Summary
If either parent earns over £60,000, you may have to repay some Child Benefit through the HICBC. At £80,000+, you repay it all in cash. But you should still claim - you keep NI credits worth £342/year in retirement income regardless.
How the Taper Works
The HICBC is 1% of your total annual Child Benefit for every £200 your adjusted net income exceeds £60,000. This means:
- - At £60,001-£79,999: partial charge (1% to 99% of benefit)
- - At £80,000+: full clawback (100% of cash benefit)
- - The taper band is £60,000 to £80,000 - a £20,000 range
- - Effective marginal rate in this band: 50% on income over £60k
Who Pays the HICBC
The HICBC is based on the higher earner's individual adjusted net income - not the household total. Two parents each earning £55,000 would pay no HICBC, because neither individual exceeds £60,000.
What counts as adjusted net income
- + Employment income (salary and bonuses)
- + Self-employment profits
- + Benefits in kind (company car, private medical)
- + Rental income
- - Pension contributions (salary sacrifice or personal)
- - Gift Aid donations (grossed up)
- - Trading losses
New for 2026-27: PAYE Real-Time Collection
From 2026-27, HMRC can collect the HICBC automatically via your PAYE tax code, rather than requiring you to file a Self Assessment return. This is a significant administrative change.
- - HMRC adjusts your tax code to collect HICBC through payroll
- - You must register with HMRC online to set up PAYE collection
- - Self Assessment is still available if you prefer
- - Check your tax code carefully - an incorrect code can over or under-collect
How to Reduce Your HICBC
Salary sacrifice pension contributions reduce your adjusted net income. This is the most effective legal way to reduce or eliminate the HICBC.
- Before sacrifice: £65,000 income, 25% HICBC, pay £351.65 charge on 1 child
- Sacrifice £5,000 to pension: income drops to £60,000
- After sacrifice: zero HICBC, keep £1,406.60 full benefit
- Net gain: £1,406.60 benefit retained + £5,000 in pension + NI savings
Opt Out vs Not Claiming: A Critical Distinction
HICBC History
- 2013: HICBC introduced at £50,000 threshold
- 2013-2024: Threshold frozen at £50,000 despite wage growth
- April 2024: Threshold raised to £60,000, full clawback at £80,000
- 2026-27: PAYE real-time collection option introduced
HICBC Calculator 2026-27
High Income Child Benefit Charge - see exactly what you owe
Adjusted net income = salary + benefits - pension contributions - gift aid donations
If you sacrifice £5,000 into your pension, your adjusted net income drops to £60,000 and the HICBC falls to zero. You keep the full £1,406.60 in Child Benefit cash, plus pension savings, plus NI credits.
Worked Examples - HICBC Charge by Income
| Income | 1 child | 2 children | 3 children |
|---|---|---|---|
| £60,000 | £0 | £0 | £0 |
| £62,000 | £140.66 | £233.74 | £326.82 |
| £65,000 | £351.65 | £584.35 | £817.05 |
| £70,000 | £703.30 | £1168.70 | £1634.10 |
| £75,000 | £1054.95 | £1753.05 | £2451.15 |
| £80,000 | £1406.60 | £2337.40 | £3268.20 |
Charge amounts based on 2026-27 annual rates. Actual charge may vary slightly due to rounding rules.
Why Always Claim - Even at 100% Clawback
At £80,000+ income, the HICBC claws back every penny of Child Benefit cash. But you should still register and claim for one crucial reason:
- Each year of NI credits = £342/year in retirement income
- Over 12 years of claiming = up to £4,104/year extra pension
- Over 20 retirement years = £82,080 in total pension income
- Cost: zero, if you opt out of payments and avoid HICBC
Simply: opt out of payments, keep the NI credits. No charge, no cost, full pension benefit.