// Source citations for the factual claims in this guide (kept out of the // rendered tree: flow-level MDX comments break Next scroll-on-navigation). export const sources = [ "source: https://www.gov.uk/child-benefit-tax-charge retrieved 2026-06-12: charge applies on adjusted net income over £60,000, repays 1% of child benefit per £200 over, equals 100% of the benefit at £80,000; opting out of payments keeps NI credits; paid via PAYE or Self Assessment", "source: https://www.gov.uk/child-benefit/what-youll-get retrieved 2026-06-12: weekly rates £27.05 eldest or only child, £17.90 each additional child", "source: https://www.gov.uk/national-insurance-credits/eligibility retrieved 2026-06-12: claiming child benefit for a child under 12 gives automatic Class 3 NI credits, even if you do not receive the payments", ];

Guide · 4 minute read

Should I still claim child benefit if I earn over £60k?

Yes, almost always. The High Income Child Benefit Charge only claws back 1% of the benefit for every £200 you earn over £60,000, so you keep some of it all the way to £80,000. And claiming protects state pension credits even if you stop the payments.

How the charge actually works

The High Income Child Benefit Charge (HICBC) kicks in when the higher earner in the household has adjusted net income over £60,000. It is not a cliff edge. You repay 1% of your child benefit for every £200 of income over £60,000, so the benefit is only fully wiped out at £80,000.

Child benefit is worth £27.05 a week for your eldest or only child and £17.90 a week for each additional child. That is £1,406.60 a year for one child and £2,337.40 for two.

A worked example: you earn £70,000 with two children. You are £10,000 over the threshold, which is 50 lots of £200, so the charge is 50% of £2,337.40, about £1,169. You still keep the other £1,169. Earning over £60,000 does not make claiming pointless; it makes it partially taxed.

The sting is the effective marginal rate inside the taper. Between £60,000 and £80,000, a parent of two in England, Wales or Northern Ireland pays 40% income tax, 2% National Insurance, and loses about 11.7p of child benefit per extra £1 earned. That is an effective rate of roughly 54%, and closer to 58% with three children. Our take-home pay calculator shows what each band of your salary actually delivers.

Claim even if you would lose all of it

If your income is £80,000 or more, the charge equals the full benefit, so taking the payments gains you nothing in cash. Claim anyway, then tick the box to opt out of receiving payments.

Here is why. Claiming child benefit for a child under 12 gives the claiming parent automatic Class 3 National Insurance credits, which count toward the state pension. That matters most for a parent who is not working or earning below the NI threshold: without the claim, they can quietly rack up missing years and a permanently smaller state pension. The claim, not the payment, is what earns the credits, so opting out of payments costs nothing.

Two practical points. Make sure the lower or non-earning parent is the named claimant if one of you is not building NI through work. And claim promptly when a child is born; it also gets the child a National Insurance number automatically at 16.

The pension trick that keeps the benefit

The charge is based on adjusted net income, which is broadly your total taxable income minus pension contributions and Gift Aid donations. That word "minus" is the lever.

Suppose you earn £66,000 with two children. You are on track to repay 30% of the benefit, about £701. If you put £6,000 into your pension (or sacrifice £6,000 of salary), your adjusted net income drops to £60,000 and the charge disappears entirely. The pension contribution gets higher-rate tax relief, removes the charge, and with salary sacrifice saves National Insurance too. Money you were going to lose becomes retirement savings instead. Run your own numbers through the salary sacrifice calculator.

The honest trade-off: pension money is locked away until at least your late fifties. If your budget is already tight, keeping cash now and paying the charge can be the right call, especially with nursery bills in the mix (the childcare costs calculator helps you see the full picture). The trick works best for people who would be saving into a pension anyway.

How you pay it

You can pay the charge through PAYE, so it comes out of your tax code, or through Self Assessment. If you already file a return for other reasons (self-employment, investment income) it goes on the return. If Self Assessment was only ever about this charge, you can ask HMRC to switch you to PAYE instead.

One household earning £61,000 pays the charge; two parents each earning £59,000 do not, because it tests the higher earner's individual income, not the household total. Unfair, perhaps, but worth knowing before you turn down a pay rise over it: inside the taper you always keep most of each extra pound.

Common questions

At what salary do you lose child benefit completely?

The charge equals 100% of the benefit once the higher earner's adjusted net income reaches £80,000. Between £60,000 and £80,000 you repay 1% of the benefit per £200 over £60,000, so at £70,000 you keep half.

Is it worth claiming child benefit if I earn £80k or more?

Yes, claim but opt out of the payments. The claim itself earns the named parent Class 3 National Insurance credits toward the state pension while a child is under 12, and gets the child an NI number at 16, with no charge to pay.

Do pension contributions reduce the child benefit charge?

Yes. The charge uses adjusted net income, which deducts pension contributions and Gift Aid. Contributing enough to bring adjusted net income to £60,000 or below removes the charge entirely, on top of the usual tax relief.

Is the £60,000 limit per person or per household?

Per person. It tests the higher earner's individual adjusted net income, so two parents on £59,000 each (£118,000 combined) pay nothing, while a single earner on £61,000 pays some of the charge.

How do I pay the High Income Child Benefit Charge?

Through PAYE via your tax code, or through Self Assessment. If you only ever filed a return for this charge, you can ask HMRC to move you to PAYE; if you file for other reasons, it stays on your return.

Guidance and education, not regulated financial advice.