How the Child Benefit charge works
If your adjusted net income is over £60,000, you pay back 1% of your Child Benefit for every £200 over. At £80,000 you pay it all back. The charge is called the High Income Child Benefit Charge.
It’s based on each parent’s own income, not the household’s. If both of you earn over £60,000, the one with the higher income pays.
| Eldest or only child | £27.05 a week |
|---|---|
| Each other child | £17.90 a week |
| Charge starts | £60,000 |
| All Child Benefit repaid | £80,000 |
Worked example
Jamie has two children, so the family gets £2,337 of Child Benefit a year. Jamie is £10,000 over the threshold, so pays back 50%: £1,168. Jamie sacrifices £10,000 of salary into a pension.
| Take-home pay falls by | £5,800 |
|---|---|
| Child Benefit charge saved | £1,168 |
| Real cost of £10,000 in the pension | £4,632 |
That’s 46p for every £1 that goes into Jamie’s pension.
Should you still claim?
Yes, register even if you’ll pay it all back. You can ask not to be paid, so there’s no charge, but claiming:
- gives a parent who isn’t working National Insurance credits towards their State Pension
- gets your child a National Insurance number automatically before they turn 16
Earning £60,000 to £100,000?
A regulated financial adviser can plan pension contributions around both the Child Benefit charge and the £100k trap.
Find a financial adviserQuestions
How do I pay the charge?
Through your tax code (PAYE) or Self Assessment. If you already file a tax return for another reason, you must use Self Assessment.
Does my partner’s income count?
Only to decide who pays. Each parent’s own adjusted net income is checked, and the higher earner pays. A couple each earning £59,000 pay nothing.
What counts as adjusted net income?
Your total taxable income, minus pension contributions made by salary sacrifice or before tax, and minus the gross amount of personal pension contributions and Gift Aid.