High Income Child Benefit Charge escape planner
The High Income Child Benefit Charge starts once adjusted net income passes £60,000 and takes back 1% of Child Benefit for every £200 above that, reaching 100% at £80,000, per gov.uk. A gross pension contribution that brings income back under £60,000 removes the charge entirely.
How much Child Benefit do I lose above £60,000?
The charge is a sliding scale, not an all-or-nothing deduction, per gov.uk. Once adjusted net income passes £60,000, 1% of Child Benefit is repaid for every £200 above that line. By £80,000 the whole amount is taken back. The figure that matters is adjusted net income, not salary. It also picks up bonuses, a company car and savings income.
How does a pension contribution avoid the charge?
A gross pension contribution lowers adjusted net income pound for pound. Someone £8,000 over the £60,000 line can pay in about that much to bring adjusted net income back under it, which removes the charge entirely. The contribution also earns income tax relief, so the real cost of escaping is usually lower than the amount paid in. The result box above shows the estimated charge, the pension needed, and the tax relief together.
What does the worked example show at £68,000?
On an adjusted net income of £68,000 with 2 children, the estimated charge takes back about £935 of an estimated £2,337 of Child Benefit. Paying £8,000 into a pension brings adjusted net income under £60,000, so the full Child Benefit is kept and about £3,200 of income tax relief is gained. Once the removed charge and the relief are counted, the estimated net cost of that contribution is roughly £3,865, and the money remains 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, as set out on gov.uk. The charge repays 1% of Child Benefit for every £200 above that line, so by £80,000 the whole amount is taken back.
How much Child Benefit do I lose above £60,000?
Above £60,000 of adjusted net income, 1% of Child Benefit is lost for every £200 of income over that threshold, per gov.uk. At £80,000 the charge equals 100% of the Child Benefit received, so nothing is kept in cash terms above that point.
How does a pension contribution avoid the charge?
A pension contribution reduces adjusted net income pound for pound. Bringing adjusted net income back under £60,000 removes the charge completely, and the contribution also earns income tax relief. It is one of the few ways to keep Child Benefit and reduce a tax bill at the same time.
Is it worth keeping the claim if I pay the full charge?
Often yes, for two reasons. The claim can be kept with payments switched off, which still protects State Pension entitlement through National Insurance credits until the child turns 12. A pension contribution may also remove the charge entirely, so it is worth checking before opting out.
What counts as adjusted net income?
It is total taxable income, including salary, benefits in kind, savings and dividends, minus gross pension contributions and Gift Aid donations. It is not just salary, so bonuses and a company car can push adjusted net income over the threshold without an obvious pay rise.
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, according to gov.uk. Current figures should be confirmed on gov.uk before being relied upon.
What does the worked example show at £68,000?
On an adjusted net income of £68,000 with 2 children, the estimated charge is about £935 of an estimated £2,337 of Child Benefit. A pension contribution of about £8,000 would bring income back under £60,000 and remove that charge.
Sources & Rate Verification
Rates verified against official statutory guidance on 6 September 2026.