High Income Child Benefit Charge

Last updated: 23/01/2025

The High Income Child Benefit Charge (HICBC) threshold at which Child Benefit begins to be withdrawn was increased from £50,000 to £60,000 from 6 April 2024.
From 6 April 2024, the charge is calculated as 1% for each £200 of income above £60,000, thereby reducing the total effective tax rate for those affected by the charge. In addition, Child Benefit will not be fully withdrawn until individuals earn £80,000 or more, instead of £60,000 previously. The charge was previously calculated as 1% of the Child Benefit payment made for each £100 of income above £50,000.
The previous government was planning to administer the HICBC on a household rather than individual basis by April 2026. However, the current government announced at Autumn Budget 2024 that it will not continue with reform to base the HICBC on household income.
The government has also announced it will allow employed individuals to make child benefit payments through their tax code. They will also pre-prepopulate self assessment tax returns with child benefit data for those not using this service.
Timing: The threshold changes were effective from 6 April 2024. The collection of charges via tax codes is expected to apply from 6 April 2025, but no legislation or guidance has been published as yet.

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