The High Income Child Benefit Charge Explained: £60,000 to £80,000 Taper (UK 2024/25 Onwards)
HMRC's High Income Child Benefit Charge (HICBC) claws back Child Benefit when the higher earner in a couple earns over £60,000 in the 2024/25 tax year onwards, tapering to full clawback at £80,000. Here's the taper mechanic, the HMRC worked example, and the opt-out that preserves NI credits.
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Open calculatorWhat the High Income Child Benefit Charge is
If you or your partner earn more than £60,000 a year, you'll have to pay some of your Child Benefit back (gov.uk). If you or your partner earn £80,000 or more, you'll have to pay all of it back (gov.uk).
The charge is called the High Income Child Benefit Charge (HICBC) and is collected through Self Assessment rather than by reducing the Child Benefit payment itself.
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The thresholds
Two figures are load-bearing:
- HICBC starts to apply on income over £60,000 for tax years starting from 2024 to 2025 (gov.uk).
- If you or your partner earn £80,000 or more, you'll have to pay all of it back (gov.uk).
Between those two figures the charge tapers: you'll pay back 1% of your Child Benefit for every £200 you earn over the threshold (gov.uk).
The HMRC worked example
HMRC publishes a worked example on its Child Benefit tax charge page that walks through the arithmetic for a typical case:
Your adjusted net income is £67,600 in tax year 2024 to 2025. This is £7,600 over the £60,000 threshold. As 7,600 divided by 200 is 38, you'll pay back 38% of your Child Benefit (gov.uk).
The rules that applied up to the previous tax year
The historical version of the charge used tighter figures:
- If you or your partner earned more than £50,000 a year, you'll have to pay some of your Child Benefit back (gov.uk).
- If you or your partner earned £60,000 or more, you'll have to pay all of it back (gov.uk).
- You'll pay back 1% of your Child Benefit for every £100 you earn over the threshold (gov.uk).
HMRC's worked example for that period: Your adjusted net income is £56,700 for tax year 2023 to 2024. This is £6,700 over the £50,000 threshold. As 6,700 divided by 100 is 67, you'll pay back 67% of your Child Benefit (gov.uk).
Opting out of Child Benefit payments
If you opt out of receiving payments, you are still registered for Child Benefit but you do not receive the payment (gov.uk). You would not have to pay the tax charge and you would still get National Insurance credits (gov.uk).
The NI credits matter because they can preserve State Pension entitlement for a parent who has time out of paid work.
A note on scope
This page covers the published HMRC rules: the £60,000 entry threshold for HICBC from 2024/25 (gov.uk), the £80,000 full-clawback point (gov.uk), the 1%-per-£200 taper (gov.uk), the £50,000 threshold for tax years up to 2023/24 (gov.uk), and the opt-out that preserves NI credits (gov.uk).
UK Calculator provides information and tools, not regulated tax advice. Adjusted net income is affected by pension contributions and other reliefs — anyone close to the boundaries should consult a chartered tax adviser or contact HMRC directly.
Frequently asked questions
At what income does HICBC start to apply?
Over £60,000 for tax years starting from 2024 to 2025 (gov.uk).
At what income is Child Benefit fully clawed back?
At £80,000 or more (gov.uk).
How does the taper work?
You'll pay back 1% of your Child Benefit for every £200 you earn over the threshold (gov.uk).
What was the previous threshold?
Over £50,000 for tax years up to and including the tax year 2023 to 2024 (gov.uk). The taper ran at 1% per £100 above threshold (gov.uk) and closed off Child Benefit fully once the higher earner reached £60,000 (gov.uk).
Can I opt out and still get NI credits?
Yes. If you opt out of receiving payments, you are still registered for Child Benefit but you do not receive the payment (gov.uk), and you would not have to pay the tax charge and you would still get National Insurance credits (gov.uk).
Does the threshold apply to household income or one earner?
To the higher earner. If you or your partner earn more than £60,000 a year, you'll have to pay some of your Child Benefit back (gov.uk).
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