How the charge works
Child Benefit is £27.05 per week for your first or only child and £17.90 for each additional child (2026/27 rates).
If the higher earner in the household has ANI above £60,000, some or all of the Child Benefit may be clawed back through the HICBC.
The charge increases by 1% for every £200 of income above £60,000. At £80,000, the charge equals 100% of the benefit.
Here is what that looks like in practice:
| ANI | Charge % | 1 child (annual) | 2 children (annual) |
|---|---|---|---|
| £60,000 | 0% | £1,407 kept | £2,338 kept |
| £65,000 | 25% | £1,055 kept | £1,754 kept |
| £70,000 | 50% | £703 kept | £1,169 kept |
| £75,000 | 75% | £352 kept | £585 kept |
| £80,000 | 100% | £0 kept | £0 kept |
Should you still claim?
Even if you owe back 100%, there are reasons to keep claiming:
- NI credits: The parent who claims gets National Insurance credits towards their State Pension. This matters if they are not working or earning below the NI threshold.
- Child's NI number: Claiming ensures your child is registered and receives their NI number automatically at 16.
You can opt to receive the benefit and pay the charge, or stop receiving payments but keep the claim active for NI credit purposes.
How to reduce your HICBC liability
The same strategies that help with the £100k trap work here too:
- Pension contributions (salary sacrifice or SIPP) reduce your ANI
- Gift Aid reduces your ANI
- Getting your ANI below £60,000 eliminates the charge entirely
For someone with two children (around £2,338/year in benefit), reducing ANI from £70,000 to £60,000 saves the full benefit amount. The pension contributions needed to achieve this often generate additional tax relief that more than covers the cost.
See your exact numbers
Enter your salary, pension and household details. CliffGuard calculates your ANI, marginal rate and shows you exactly how much you could save.
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