Child Benefit and the High Income Child Benefit Charge: a planning guide

Child Benefit is paid to the claimant, while the High Income Child Benefit Charge is an income-tax charge for the higher-income person in a couple when the relevant income threshold is exceeded. They are separate processes. HMRC does not normally reduce each Child Benefit payment by the charge.

Current standard rates used by the calculator

For the 2026 to 2027 tax year, the published weekly rate is £27.05 for the eldest or only child and £17.90 for each additional child. The Child Benefit calculator selects its configured rate set by date and multiplies the weekly amount by 52 for an annual planning estimate.

An annualised estimate will not always equal payments received in a particular tax year. A new claim, a child ceasing to qualify, payment timing or a change of claimant can produce a part-year amount.

How the charge tapers

For tax years from 2024 to 2025 onwards, the charge begins when the higher earner’s adjusted net income is over £60,000. It increases by 1% of the Child Benefit received for every complete £200 above that threshold and reaches 100% at £80,000. At or below £60,000 the percentage is zero; at £80,000 or above it is 100%.

For example, adjusted net income of £67,600 is £7,600 over the threshold. That is 38 complete £200 increments, so the charge is 38% of the relevant Child Benefit. The charge cannot exceed the Child Benefit amount.

Which person’s income matters?

The test is not based on combined household income. If both partners are above the threshold, the partner with the higher adjusted net income is responsible for the charge. The rules can also apply where someone else receives Child Benefit for a child living with the higher earner and contributes at least as much to the child’s upkeep.

Claiming but opting out of payments

A claimant can register for Child Benefit and opt out of receiving payments. GOV.UK says this can preserve National Insurance credits towards the State Pension and the automatic issue of a National Insurance number for the child, while avoiding a future charge on payments not received. Any charge owed up to the payment stop date still has to be dealt with.

Which person claims can matter for National Insurance credits. Do not assume the higher earner should be the claimant; review who needs the credits and use official guidance.

Worked budget example

If the gross annual benefit is £2,000 and the calculated charge percentage is 25%, the estimated charge is £500. The budgeting amount after accounting for the charge is £1,500. The family may still receive the £2,000 as Child Benefit and pay £500 through tax, so cash timing differs from the net planning figure.

Limits and official sources

The calculator does not file a claim, calculate adjusted net income from raw tax records or prorate part-year entitlement. It also does not decide which adult is liable. Check current Child Benefit rates, the High Income Child Benefit Charge rules and the guidance on opting out of payments. For household planning, include benefit and tax cash flows separately in the Childcare Budget calculator or your own monthly budget.