High Income Child Benefit Charge (HICBC) — 2025 Guide for Parents
- Taylor Keeble
- Oct 28
- 3 min read
Child Benefit remains one of the most valuable family benefits in the UK, but if your income is above a certain level, you may face the High Income Child Benefit Charge (HICBC). This guide explains the latest 2025 rules, thresholds, and planning opportunities so you can keep more of your Child Benefit.
What is Child Benefit?
Child Benefit is a tax-free payment for parents or guardians responsible for a child. It is calculated weekly and normally paid every four weeks. You can claim regardless of income or savings — but you may later have to pay some or all of it back through the HICBC.
You usually stop receiving Child Benefit on 31 August after your child’s 16th birthday, unless they stay in approved education or training (e.g. A-levels, BTEC, NVQs). Payments then continue until the child’s 20th birthday.
Child Benefit Rates for 2025/26
From April 2025, the weekly amounts are:
£26.05 for the eldest (or only) child
£17.25 for each additional child
That means a family with two children receives £2,251.60 per year.
What is the High Income Child Benefit Charge?
The HICBC claws back Child Benefit through the tax system once the adjusted net income of either you or your partner exceeds the threshold.
The 2025 Rules (new thresholds)
Threshold: £60,000 adjusted net income
Taper: 1% of Child Benefit is charged back for every £200 of income over £60,000
Full clawback: At £80,000 or more, 100% of the benefit is repaid
This is a major improvement on the old rules, which used a £50,000 threshold and full clawback at £60,000.
Who Pays?
The HICBC is paid by the partner with the highest income, not necessarily the person claiming Child Benefit.
If you don’t want the hassle of repaying, you can elect to stop receiving payments (but still register to protect your National Insurance credits). You can also revoke this election later if your income falls below the threshold.
How to Pay
Until recently, the charge was collected through Self-Assessment tax returns, even if you had no other reason to file.
From 2025, HMRC now allows many people to pay via PAYE tax code adjustments, making the process much easier.
Example Calculations
Example 1 — one child, income £70,000
£10,000 over threshold ÷ £200 = 50% charge
Annual Child Benefit = £1,354.60 → you repay £677.30
Example 2 — two children, income £78,000
£18,000 over threshold ÷ £200 = 90% charge
Annual Child Benefit = £2,251.60 → you repay £2,026.44
At £80,000 income, you repay 100% — meaning no net benefit.
Planning Tips
Equalise incomes where possible between partners to reduce or eliminate the charge.
Pension contributions and Gift Aid can reduce adjusted net income, lowering the charge and boosting your tax relief.
Don’t stop claiming altogether unless necessary, claiming preserves your NI credits, which count towards your State Pension.
Review annually as pay rises, bonuses, or dividends can tip you into the charge.
Speak to an Expert
The HICBC affects many families, but careful planning can reduce or even eliminate the charge, and the 2024 reforms mean you may now keep more Child Benefit than before.
Authored by: London Team
