If you or your partner earns more than £50,000 per year, you may have to pay something called the High Income Child Benefit Charge (HICBC). This can reduce or even cancel out the Child Benefit you receive.
How It Works
- Income between £50,000 and £60,000: You repay 1% of your Child Benefit for every £100 you earn over £50,000.
- Income over £60,000: You repay 100% of your Child Benefit.
Example:
Let’s say you earn £55,000. That’s £5,000 over the £50,000 threshold. You’ll repay 50% of your Child Benefit in tax.
If you receive £2,212.60 per year, you’ll have to pay back £1,106.30 through your Self Assessment tax return.
How to Handle HICBC
- You can still claim the benefit and repay it via tax
- Or, you can opt out of receiving the payments (but still register the claim)
It’s often better to still register to protect your National Insurance record.
👉 Use the Child Benefit Calculator to see how much you can get.