---
title: "High Income Child Benefit Charge (HICBC) 2026/27: A Guide to the £60k Threshold"
description: "The High Income Child Benefit Charge (HICBC) is a tax charge designed to claw back Child Benefit from higher-earning families. It is one of the more complex areas of personal taxation, as liability is based on the income of an…"
url: "https://www.accountingfirms.co.uk/knowledge-bank/high-income-child-benefit-charge-hicbc/"
updated: "2026-08-12"
category: Self Employed Tax
---

# High Income Child Benefit Charge (HICBC) 2026/27: A Guide to the £60k Threshold

The High Income Child Benefit Charge (HICBC) is a tax charge designed to claw back Child Benefit from higher-earning families. It is one of the more complex areas of personal taxation, as liability is based on the income of an individual, not the household, and requires the liable individual to engage with the Self Assessment system.

Following changes made in the Spring Budget 2024, the income thresholds were increased, and these remain in place for the 2026/27 tax year.

## **Who is Liable to Pay the HICBC?**

An individual is liable for the HICBC for the 2026/27 tax year if they meet two conditions:

1. Their 'adjusted net income' for the tax year exceeds £60,000.
2. They or their partner receive Child Benefit payments during the year.

Crucially, the charge is payable by the partner with the *higher* [adjusted net income](https://www.accountingfirms.co.uk/blog/childcare-benefit-and-the-tax-charge/), regardless of which partner claims and receives the Child Benefit payments. If the partners' incomes are identical, the charge falls on the person who is entitled to the Child Benefit.

## **The 2026/27 HICBC Thresholds and Calculation**

The HICBC does not remove Child Benefit at a single cliff-edge. Instead, it is tapered away as income rises between two thresholds.

| Adjusted Net Income (ANI) | Impact on Child Benefit |
| --- | --- |
| **Up to £60,000** | No HICBC is due. The family keeps the full Child Benefit. |
| **£60,001 to £79,999** | A tapered charge applies, gradually clawing back the benefit. |
| **£80,000 and above** | The charge is equal to 100% of the Child Benefit received. |

### **How the Taper is Calculated**

The charge is calculated as 1% of the total Child Benefit received for every £200 of income that the higher earner's adjusted net income exceeds £60,000. This formula is set out in legislation.

> **Formula Example:** A parent with an adjusted net income of £70,000 receives Child Benefit for two children. Their income is £10,000 over the £60,000 threshold.
>
>
>
> 1. Divide the excess income by £200: £10,000 / £200 = 50.
> 2. This gives the percentage of Child Benefit to be repaid: 50%.
>
>
>
> The individual will face an [income tax charge](https://www.accountingfirms.co.uk/blog/loans-to-shareholders-rules-an-unexpected-twist/) equal to 50% of the Child Benefit their family received during the tax year.

## **What is 'Adjusted Net Income'?**

The HICBC is based on a specific definition of income known as 'adjusted net income' (ANI). It is not simply your gross salary. ANI is your total taxable income before [personal allowances](https://www.accountingfirms.co.uk/blog/tax-code-1257l/), less certain specific reliefs.

Key deductions that can reduce your ANI include:

- Gross personal pension contributions.
- Trading losses (for the self-employed).
- Charitable donations made through Gift Aid.

This means that an individual with a salary of £65,000 could reduce their ANI below the £60,000 threshold by making a pension contribution of £4,000 (£5,000 gross), thereby eliminating the HICBC for that tax year.

## **How is the HICBC Paid?**

The HICBC is a free-standing tax charge and is collected via the [Self Assessment](https://www.accountingfirms.co.uk/blog/balanced-workload-during-tax-season/) system. Any individual liable for the charge must [register for Self Assessment](https://www.accountingfirms.co.uk/knowledge-bank/registering-for-self-assessment-uk-a-guide/) and declare it on their annual tax return.

In some cases, HMRC may be able to collect the charge through an adjustment to an individual's PAYE [tax code](https://www.accountingfirms.co.uk/blog/time-to-p45-the-p45/), provided the individual does not object.

## **Claiming Child Benefit: The Options**

Families affected by the HICBC have two main options.

1. **Claim and Receive Payments:** The family receives the weekly Child Benefit payments as normal. The higher earner then pays the HICBC through their tax return at the end of the year.
2. **Claim and 'Opt Out' of Payments:** The family can make a claim for Child Benefit but elect not to receive the payments. This avoids the need to pay the HICBC.

It is important to understand that while Child Benefit payments themselves are not liable to [income tax](https://www.accountingfirms.co.uk/blog/hmrc-payment-niers/), the HICBC effectively reclaims them through a separate charge.

### **The Importance of Claiming Child Benefit**

Even if you know you will have to repay 100% of the benefit via the HICBC, it is often still advisable for the lower-earning or non-working parent to **claim** the benefit (and then opt out of payments). This is because a Child Benefit claim helps protect the claimant's [National Insurance record](https://www.accountingfirms.co.uk/blog/what-are-payroll-records/) by providing NI credits for years when they are out of work to care for a child. These credits build entitlement to the State Pension.

 

*For further detailed guidance, you should refer to Chapter 8 of Part 10 of the Income Tax (Earnings and Pensions) Act 2003, which contains the primary legislation for the HICBC. HMRC's guidance on GOV.UK also provides a Child Benefit tax calculator to estimate a potential charge.*

## References

1. [Income Tax: Increasing the High Income Child Benefit Charge threshold at 3](https://www.gov.uk/government/publications/income-tax-increasing-the-high-income-child-benefit-charge-threshold/the-high-income-child-benefit-charge-threshold#:~:text=%C2%A360%2C000%20and%20%C2%A380%2C000%2C%20the%20rate,%20The%20tax&text=%C2%A360%2C000%20and%20%C2%A380%2C000%2C%20the%20rate,Aid%20charity%20donations%2C&text=at%20which%20HICBC,%20The%20tax&text=at%20which%20HICBC,Aid%20charity%20donations%2C)
2. [Income Tax (Earnings and Pensions) Act 2003, s 681B](https://www.legislation.gov.uk/ukpga/2003/1/section/681B)
3. [Income Tax: Increasing the High Income Child Benefit Charge threshold at 4](https://www.gov.uk/government/publications/income-tax-increasing-the-high-income-child-benefit-charge-threshold/the-high-income-child-benefit-charge-threshold#:~:text=to%20the%20date%20they%20or,2028%202029%200%20%2D540%20%2D635&text=to%20the%20date%20they%20or,2025%202026%202027&text=their%20partner%20opt,2028%202029%200%20%2D540%20%2D635&text=their%20partner%20opt,2025%202026%202027)