HICBC escape planner
See what the Child Benefit charge costs you, then the pension contribution that removes it and how much tax and charge that saves.
How the charge and the escape work
The charge is a sliding scale, not an all-or-nothing deduction. Once your adjusted net income passes £60,000, you repay 1% of your Child Benefit for every £200 above the line, so at £80,000 you lose all of it. The number that matters is adjusted net income, which is wider than salary because it picks up bonuses, a company car and savings income.
A gross pension contribution lowers that same figure pound for pound. If you are £8,000 over the line, a contribution of about that much takes you back under £60,000 and removes the charge entirely. The contribution also earns income tax relief, so the true cost of escaping is much less than the amount you pay in. The result box shows all three numbers together.
Worked example
On £68,000 with 2 children, the charge takes back about £935 of your £2,337 Child Benefit. Paying £8,000 into a pension brings your adjusted net income under £60,000, so you keep the full Child Benefit and get about £3,200 of income tax relief. Once the removed charge and the relief are counted, the real cost of that contribution is roughly £3,865, and the money is still yours inside the pension.
Common questions
What is the High Income Child Benefit Charge?
It is a tax charge that claws back Child Benefit when the higher earner in a household has adjusted net income over £60,000. You repay 1% of your Child Benefit for every £200 above that, so by £80,000 the whole amount is taken back.
How does a pension contribution avoid the charge?
A pension contribution reduces your adjusted net income pound for pound. Bring your adjusted net income back under £60,000 and the charge disappears completely, while the contribution also earns income tax relief. It is one of the few ways to keep Child Benefit and cut your tax at the same time.
Is it worth keeping the claim if I pay the full charge?
Often yes, for two reasons. You can claim and choose not to receive payments, which still protects your State Pension through National Insurance credits until the child is 12. And a pension contribution may remove the charge entirely, so it is worth checking before you opt out.
What counts as adjusted net income?
It is your total taxable income, including salary, benefits in kind, savings and dividends, minus things like gross pension contributions and Gift Aid donations. It is not just your salary, so bonuses and a company car can push you over without you noticing.
What are the Child Benefit rates for 2026/27?
From April 2026 Child Benefit is £27.05 a week for the eldest or only child and £17.9 a week for each additional child. Confirm current figures on gov.uk before relying on them.