The High Income Child Benefit Charge explained for new parents

If you or your partner earn more than £60,000 a year, you may have to pay back some or all of your Child Benefit through a tax charge. Lots of new parents decide not to claim because of it. But registering for Child Benefit can protect your State Pension, so it’s usually worth doing even if you end up paying it all back.

How much is Child Benefit?

£27.05 a week for your eldest or only child, and £17.90 a week for each child after that. For one child that’s about £1,406.60 a year. It’s usually paid every 4 weeks, and only one person can get it for each child.

How the charge works

The High Income Child Benefit Charge applies if your ‘adjusted net income’ is over £60,000 in a tax year. You pay back 1% of your Child Benefit for every £200 of income over £60,000. Once your income reaches £80,000, you pay it all back.

Adjusted net income	Charge	With one child (about £1,406.60 a year)
£60,000	0%	£0.00
£65,000	25%	£351.65
£70,000	50%	£703.30
£75,000	75%	£1,054.95
£80,000	100%	£1,406.60

It’s based on each person’s own income, not your combined household income. Plans to change it to household income were dropped in 2024. If you and your partner both earn over £60,000, whoever has the higher income pays the charge, even if the other person is the one who gets the Child Benefit.

Your partner means someone you’re married to, in a civil partnership with, or living with as a couple. The rules are the same across the UK.

What counts as adjusted net income?

It’s your total taxable income before your Personal Allowance, minus some things like pension contributions and Gift Aid. It includes your salary, self-employed profits, savings interest, dividends and rental income.

Paying into a pension can bring it down. For example, if you earn £62,000 and pay £1,600 into a personal pension, your provider adds £400 in tax relief. The full £2,000 comes off your income, bringing it to £60,000, so you wouldn’t pay the charge. Salary sacrifice pension schemes also lower your taxable income. HMRC has a Child Benefit tax calculator to help you check.

Maternity leave can change the picture

The charge is worked out over the whole tax year. If you’re on maternity pay for part of the year, your income may drop below £60,000, even if you’re usually over it. If your partner is the higher earner, it’s their income that matters.

Why it’s still worth claiming

National Insurance credits. The person who claims gets credits towards their State Pension automatically until the child is 12, even if they don’t take the payments. If you’re at home with your baby or earning less, it usually makes sense for you to be the one who claims.
Your child’s National Insurance number. They’ll get one without having to apply, shortly before they turn 16.
Flexibility. If your income changes, you can start or stop the payments at any time.

You can claim 48 hours after you’ve registered your baby’s birth. Claims can only be backdated 3 months, so don’t leave it too long.

Your options if you earn over £60,000

Claim and take the payments, then pay the charge. If you earn between £60,000 and £80,000, you’ll still keep some of the money.
Claim but choose not to get the payments. You keep the National Insurance credits and won’t have a charge to pay. This often suits people earning over £80,000.
Bring your income down, for example by paying more into a pension, if that suits your plans anyway.

How to pay the charge

If you’re employed and don’t need to send a tax return for anything else, you can usually pay through PAYE, which means it’s collected through your tax code, as long as you sort it out by 31 January after the end of the tax year. Otherwise you pay through Self Assessment, for example if you’re self-employed or have other income to declare. If you pay late, or don’t tell HMRC you owe it, you could have to pay interest or penalties as well.

If you stop the payments, you still have to pay any charge owed for the time you were getting them.

Questions people ask

Does my partner’s income count?

Not added to yours. The charge looks at each person’s income separately. It’s paid by whichever of you has the higher income, if that person is over £60,000.

We’re not married. Does the charge still apply?

Yes, if you live together as a couple. The rules are the same for married couples, civil partners and couples who live together.

Should I opt out of payments while I’m on maternity leave?

Not necessarily. Your income may be lower this tax year. Work out your likely adjusted net income for the year first, using HMRC’s calculator.

I earn over £80,000. Is there any point claiming?

Yes, if you want the National Insurance credits or your child’s National Insurance number. Fill in the claim and choose not to get the payments.