High Income Child Benefit Charge Thresholds for 2026 to 2027

The High Income Child Benefit Charge claws back Child Benefit from households where someone has a higher income. For 2026/27 it starts at £60,000 of adjusted net income and removes the benefit in full once that income reaches £80,000. The charge is tested on the higher earner's adjusted net income rather than salary, which is why it is both avoidable with planning and easy to walk into. This piece is part of the high-earner tax planning hub and sits alongside the personal allowance taper and 60 percent band.

The 2026/27 thresholds

The thresholds were last reset on 6 April 2024 and remain in place for 2026/27. HMRC's overview of the High Income Child Benefit Charge confirms the current figures.

• The charge begins where the higher partner's adjusted net income exceeds £60,000.
• It increases by 1 percent of the Child Benefit received for every £200 of income above £60,000.
• At £80,000 of adjusted net income the charge equals 100 percent of the Child Benefit, so the whole benefit is clawed back.
• Only one partner pays the charge, the one with the higher adjusted net income, regardless of who actually receives the Child Benefit.

How the charge is calculated

The charge is a percentage of the Child Benefit received in the tax year. Take the income above £60,000, divide by £200, and that is the percentage of the benefit recovered, capped at 100 percent. For 2026/27 the Child Benefit rate is £27.05 a week for the eldest or only child and £17.90 a week for each additional child, so a family with two children receives £2,337.40 over the year. A higher earner on £70,000 has £10,000 of income over the threshold, which is fifty lots of £200, giving a 50 percent charge, here about £1,168. At £80,000 the same family loses the entire £2,337.40.

Adjusted net income is the figure that matters

The charge does not look at your gross salary. It looks at adjusted net income, which is total taxable income from all sources, less certain reliefs. That distinction is the whole game. Two people on the same salary can sit on different sides of £60,000 depending on their pension contributions and other income.

• Include: salary, bonuses, taxable benefits in kind such as a company car, rental profit, dividends, savings interest and self-employment profit.
• Deduct: personal pension contributions grossed up for tax relief, and Gift Aid donations grossed up.
• The result is adjusted net income, and it is this figure that is tested against £60,000 and £80,000.

Using pension contributions to stay under the threshold

Because pension contributions reduce adjusted net income, a contribution can pull a higher earner back below £60,000 and remove the charge entirely, or below £80,000 to recover part of it. A person on £64,000 who pays £4,000 net into a personal pension brings their adjusted net income to £60,000, eliminating the charge while also building their pension. The contribution has to be a personal or relief-at-source contribution to count; the timing is the tax year in which it is paid, so it can be used to fix a year before it closes.

Paying the charge: Self Assessment or PAYE

Historically the charge was collected only through Self Assessment, which forced many employees who otherwise had no reason to file into the system. HMRC now allows employed taxpayers to pay the charge through their PAYE tax code instead of registering for Self Assessment, which removes the filing requirement for those whose only reason to file was the charge. Anyone who already files, for example because of rental or dividend income, continues to report and pay it on the return.

The opt-out trap, and why claiming still matters

Some families stop claiming Child Benefit to avoid the charge. That can be a mistake. Continuing to claim, even where the charge claws it all back, protects the claimant's State Pension by crediting National Insurance for a parent at home, and secures a National Insurance number for the child. The better approach where income is above £80,000 is usually to claim the benefit but elect not to receive the payments, keeping the National Insurance credit without triggering the charge.

Worked example: a couple deciding who pays

One partner earns £58,000 and the other £62,000, with two children. The charge falls on the £62,000 earner because their income is higher, even if the Child Benefit is paid into the other partner's account. Their income is £2,000 over £60,000, a 10 percent charge, about £234 for the year. A modest pension contribution of £2,000 net by that partner removes even this, bringing their adjusted net income to £60,000. Knowing which partner the charge attaches to, and by how little it is breached, is what makes a small contribution worthwhile.

Common questions about the child benefit charge

Is the threshold still £60,000 for 2026/27?

Yes. The charge starts at £60,000 of adjusted net income and reaches a full 100 percent clawback at £80,000 for 2026/27. These thresholds have applied since 6 April 2024.

Does it use my salary or my adjusted net income?

Adjusted net income, which is your total taxable income less grossed-up pension contributions and Gift Aid. Your salary is only part of it, and two people on the same salary can pay different charges depending on their pension contributions.

Can I avoid Self Assessment if the charge is my only reason to file?

Often yes. HMRC now lets employees pay the charge through their PAYE tax code rather than registering for Self Assessment, provided they have no other reason to file. If you already complete a return, the charge goes on it as before.

Should we stop claiming Child Benefit if we earn over £80,000?

Usually it is better to claim but elect not to receive the payments. That keeps the National Insurance credit toward the State Pension and secures the child's National Insurance number, without the payments that would trigger the charge.

The child benefit charge turns on a single figure that good planning can move. A self-assessment accountant can work out your adjusted net income, show whether a pension contribution removes the charge, and set up the right way to pay or to claim so you keep the National Insurance benefit without an unnecessary tax bill.