High Income Child Benefit Charge (HICBC) - 2025/26
A plain‑English guide to how HICBC works and how it affects take‑home pay.
What is HICBC?
The High Income Child Benefit Charge claws back some or all of your Child Benefit when either partner’s adjusted net income exceeds the threshold.
2025/26 thresholds and rates
- Adjusted net income over £60,000: charge begins.
- £60,000 → £80,000: taper zone; a higher income means a higher charge.
- Weekly Child Benefit: first child £25.60, each additional child £16.95.
Adjusted net income (ANI)
ANI roughly = gross income minus salary‑sacrifice pension (and a few other deductions). Increasing your pension via salary‑sacrifice can reduce or eliminate HICBC.
Examples
One child, ANI £70,000
- Annual Child Benefit = 52 × £25.60 = £1,331.20.
- £70k is mid‑taper (halfway between £60k and £80k) → charge ≈ 50% of Child Benefit.
- HICBC ≈ £665.60.
Two children, ANI £78,000
- Annual Child Benefit = 52 × (£25.60 + £16.95) = £2,212.60.
- £78k is 90% through the taper → charge ≈ 90% of Child Benefit.
- HICBC ≈ £1,991.34.
How the calculator handles HICBC
- We compute Child Benefit annually using current weekly rates.
- We apply the taper between £60k and £80k to adjusted net income.
- Charge is subtracted from net take‑home after tax/NI/loans.
FAQ
Do I need to stop Child Benefit to avoid HICBC?
No, you can keep receiving Child Benefit and pay HICBC via Self Assessment. Many families keep claiming to protect NI credits.
What if both partners have income?
The charge is based on the partner with the higher adjusted net income.
Does pension salary‑sacrifice help?
Yes, it lowers adjusted net income, which can reduce or eliminate the charge.