High Income Child Benefit Charge (HICBC) Calculator (2026)
Calculate the High Income Child Benefit Charge under 2025/2026 rules (£60,000 to £80,000 threshold), tax clawback, and how pension contributions restore 100% of your benefit.
United Kingdom Calculator
Adjust Your Inputs
Move the sliders or type exact numbers. Results update instantly.
Instant Estimate
Your Results
HICBC Tax Clawback Owed to HMRC
£885
Based on your selected child benefit tax calculator assumptions. Try different sliders to compare scenarios.
Total Annual Child Benefit Entitlement
£2,213
Net Child Benefit Kept in Hand
£1,328
Child Benefit Clawback Percentage
40.00%
Extra Child Benefit Restored by Pension
£0
These calculations are financial projections and planning estimates, not tax, legal or licensed financial advice. HMRC 2025/2026 statutory rates, NI thresholds, and local council rates apply.
How to Use the Child Benefit Tax Calculator
Enter higher earner adjusted net income
Input annual taxable salary minus pension contributions and Gift Aid for the higher-earning partner.
Select number of qualifying children
HMRC pays £25.60/wk for the eldest child and £16.95/wk for each additional child under 16 (or under 20 in approved education).
Test pension contribution offset
Enter planned pension salary sacrifice or SIPP deposits to see how bringing income under £60,000 restores 100% of your benefit.
Review HICBC tax charge and net retained benefit
See the exact tax clawback owed via Self Assessment and your net cash kept.
Formula & Calculation Methodology
HICBC Tax = Child Benefit Received × Min(100%, (Adjusted Net Income - £60,000) / £200 × 1%)This calculator uses standard United Kingdom financial formulas, IRS thresholds, and amortization schedules. All results compute instantly in your browser with zero data stored or transmitted.
Calculation Examples & Scenarios
Parent Earning £68,000 with 2 Children (£2,212.60 Benefit)
£68,000 adjusted net income, 2 children. £8,000 over the £60,000 threshold = 40% clawback.
Eliminating the Tax Charge via Pension Salary Sacrifice
Contributing £8,000 via salary sacrifice drops adjusted income from £68,000 back down to £60,000.
High Earner on £85,000 with 3 Children (£3,094 Benefit)
£85,000 income exceeds the £80,000 taper ceiling (100% clawback).
Key Benefits
- Updated for the landmark UK threshold reform increasing the HICBC floor from £50,000 to £60,000
- Accurately calculates the new 1% per £200 taper rate between £60,000 and £80,000
- Calculates the massive tax-saving bonus of using pension salary sacrifice to reclaim 100% of Child Benefit
Common Use Cases
- UK parents earning between £60,000 and £80,000 preparing for annual Self Assessment tax filing
- Employees planning pension salary sacrifice before the April 5 tax year-end to protect family cash flow
- Non-working or stay-at-home parents checking whether claiming preserves State Pension credits
The Reformed High Income Child Benefit Charge (£60k to £80k)
The High Income Child Benefit Charge (HICBC) applies when either partner in a household earns an Adjusted Net Income above the statutory threshold. In April 2024, the government enacted major reforms: raising the threshold from £50,000 to £60,000 and halving the clawback rate.
Under the current rules, the benefit is reduced by 1% for every £200 earned between £60,000 and £80,000. Once income reaches £80,000, the charge equals 100% of the Child Benefit received.
How Pension Contributions Eliminate the HICBC Charge
HICBC is levied strictly on "Adjusted Net Income"—your gross taxable earnings minus gross pension contributions and Gift Aid donations. This creates a remarkable financial planning opportunity.
If you earn £70,000, making a £10,000 pension contribution drops your adjusted net income to £60,000. This single move eliminates the entire HICBC tax charge, recovers 40% higher-rate tax relief, and secures employee National Insurance savings—providing an effective return of over 60% on your pension outlay.
Frequently Asked Questions
The HICBC threshold is £60,000 (raised from the previous £50,000 limit). If the higher earner in a household has adjusted net income between £60,000 and £80,000, the benefit is gradually clawed back at a rate of 1% of the total benefit for every £200 of income earned above £60,000.
Child Benefit is completely wiped out by the tax charge once adjusted net income reaches £80,000 (raised from the old £60,000 ceiling). Between £60,000 and £80,000, you retain a portion of your benefit.
HICBC is based on "Adjusted Net Income", which is your gross income MINUS pension contributions (both employer salary sacrifice and personal grossed-up SIPP contributions) and Gift Aid donations. For example, if you earn £68,000 and contribute £8,000 into your pension, your adjusted net income drops to £60,000, eliminating the HICBC tax charge completely and saving thousands in income tax.
HMRC pays £25.60 per week (£1,331.20 per year) for the eldest or only child, and £16.95 per week (£881.40 per year) for each additional qualifying child. For a family with 2 children, annual Child Benefit totals £2,212.60.
Even if you choose not to receive cash payments (to avoid filing a Self Assessment tax return), submitting the Child Benefit claim form is crucial: it credits the non-working or lower-earning parent with National Insurance credits that protect their qualifying record for the full UK State Pension until the child turns 12.
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Related United Kingdom Guides
High Income Child Benefit Charge (HICBC): New £60,000–£80,000 Rules
Comprehensive guide to the reformed UK High Income Child Benefit Charge: understand the new £60k threshold, 1% per £200 taper up to £80k, and Self Assessment filing requirements.
How Pension Salary Sacrifice Protects 100% of Your Child Benefit
Learn how increasing pension contributions or using salary sacrifice reduces adjusted net income below £60,000, eliminating the HICBC tax charge and delivering an effective 60%+ return.
Should You Claim or Opt Out of Child Benefit? National Insurance Credits & State Pension
Analyze whether high-earning parents should claim and pay HICBC or opt out of payments, and why claiming is vital for the non-working parent State Pension National Insurance record.