High Income Child Benefit Charge (HICBC)

Definition

The High Income Child Benefit Charge applies when the highest earner in a household has adjusted net income over £60,000. The charge is 1% of the Child Benefit amount for every £200 of income above £60,000. Once income reaches £80,000, the full Child Benefit is clawed back. You can either pay the charge through a Self Assessment tax return or opt out of receiving Child Benefit altogether.

Why it matters

• It creates a 60%+ effective marginal tax rate in the £60k–£80k band for families with children.
• For many families, the charge means receiving Child Benefit and paying it back — it is often simpler to opt out.

Common use cases

• Family tax planning with two incomes
• Deciding whether to opt out of Child Benefit
• Self Assessment filing for HICBC