High Income Child Benefit Charge: the £60,000 threshold explained

 

If you or your partner's adjusted net income passes £60,000 and someone receives Child Benefit for a child living with you, the High Income Child Benefit Charge may apply (for tax years from 2024-25 onwards). You pay back 1% of your Child Benefit for every £200 of income over £60,000, and once income exceeds £80,000 you repay the whole amount.

 

The charge falls on the household's highest earner, and it's based on adjusted net income — your total taxable income including savings interest and dividends, calculated before personal allowances and before deducting pension contributions.

 

You normally pay the charge through Self Assessment, though HMRC also offers a PAYE option if you don't otherwise file a return; if you file Self Assessment for any other reason, you must pay it through your tax return.

 

Practical planning points: salary sacrifice and pension contributions can reduce adjusted net income and bring you under the threshold; if you're well over £80,000 it may be worth opting out of payments while staying registered, as this protects your National Insurance credits and your child's future NI number. Use HMRC's Child Benefit tax calculator to estimate the charge.

 

Figures verified against the live GOV.UK guide at gov.uk/child-benefit-tax-charge.