How to avoid the Child Benefit charge
Last reviewed 09/11/26
Last Gov update 06/04/26
If you claim Child Benefit and you or your partner earn over £60,000, a charge takes some of it back. It is called the High Income Child Benefit Charge, and it catches people out because it does not come off your pay. The good news is that you can avoid it, and you do not have to stop claiming to do so. This guide shows how.
The charge is a bill, not a payslip deduction
The charge is not taken from your wages like tax. You have to report it and pay it yourself, through Self Assessment or a change to your tax code. So if no one has told you about it, it can arrive as an unexpected bill, sometimes for more than one year at once. If it applies to you, the first step is to tell HMRC, because a charge you do not report can add a penalty on top.
Bring your income under the line
The charge is worked out on your adjusted net income, the same figure behind the £100,000 trap. A pension contribution or a Gift Aid donation lowers that figure. Every pound you bring back under £80,000 wins some of your Child Benefit back, and at £60,000 the charge disappears entirely. The worked example below shows the move in full.
Opt out of the payments, but keep the claim
Some people stop the payments so there is no charge to pay. If you do, keep the claim itself. The claim gives you National Insurance credits towards your State Pension in years you earn little. It also gets your child a National Insurance number automatically. Opting out stops the money, not the claim, so you keep those for nothing.
Watch a bonus
A one-off payment can tip you over the line for the year. A bonus taken as cash can push your income past £60,000 and start the charge, or past £80,000 and take all your Child Benefit. Paying the bonus into your pension instead keeps your income down, so you keep the Child Benefit and the bonus both.
See your own position
Put your salary and your number of children into the calculator. It shows the charge at your income, and how much a pension contribution would reduce or clear it.
Common questions
How do I avoid the Child Benefit tax charge?
Bring your adjusted net income down. A pension contribution or a Gift Aid donation lowers the income the charge is measured on. Every pound under £80,000 wins some Child Benefit back, and at £60,000 the charge is gone. You can keep claiming the whole time.
Can I keep Child Benefit if I earn over £60,000?
Yes. You can keep claiming at any income. Between £60,000 and £80,000 a charge takes back part of it, and over £80,000 the charge equals the whole payment. A pension contribution that lowers your income reduces or clears the charge, so you keep more of the Child Benefit.
Should I stop claiming Child Benefit if I earn too much?
You can stop the payments to avoid the charge, but keep the claim itself. The claim gives you National Insurance credits towards your State Pension and gets your child a National Insurance number. Stopping the payments does not stop the claim, so you keep both.