UK Child Benefit High Income Tax Charge Calculator
Uses the new 2024/25 thresholds (£60,000–£80,000) introduced in April 2024. Enter salary, pension, and children — get your Child Benefit clawback, effective marginal rate, and the exact pension top-up that eliminates the charge entirely.
How the 2024/25 HICBC actually works
From 6 April 2024, the High Income Child Benefit Charge kicks in at £60,000 adjusted net income and phases up to 100% at £80,000. The formula:
HICBC % = min(100%, (adjusted net income − £60,000) ÷ 200)
Every £200 over £60k costs you 1% of your Child Benefit. So at £70k the charge is 50% of Child Benefit; at £75k it's 75%; at £80k or above, all of it.
Child Benefit rates (2024/25)
| Children | Weekly | Annual |
|---|---|---|
| 1 child | £25.60 | £1,331.20 |
| 2 children | £42.55 | £2,212.60 |
| 3 children | £59.50 | £3,094.00 |
| 4 children | £76.45 | £3,975.40 |
| 5 children | £93.40 | £4,856.80 |
Adjusted net income — the number that matters
HICBC uses adjusted net income, not gross salary. That means:
- Subtract: your own gross pension contributions (relief-at-source grossed up ×1.25 from the net amount)
- Subtract: Gift Aid donations grossed up
- Subtract: trading losses (self-employment)
- Do not subtract: employer pension contributions (they never touched your P60 income anyway if via salary sacrifice, so they're implicitly already out)
The pension top-up strategy in practice
For a £72,000 earner with 2 children (£2,212 Child Benefit):
- Without pension: adjusted net income £72k → 60% clawback → HICBC £1,327 (nearly all Child Benefit gone)
- £12,000 gross pension contribution (£9,600 net): adjusted net income £60k → 0% clawback → HICBC £0. Keep the full £2,212 Child Benefit AND get £2,400 higher-rate tax relief. On top of the ~£3,000 basic-rate relief added to the pension.
Combined effective relief on that £9,600: ~72–75%. Very few household financial moves come close.
Effective marginal rate in the taper zone
| Children | Marginal rate £60k–£80k |
|---|---|
| 1 child | 40% + 2% + 3.3% = 45.3% |
| 2 children | 40% + 2% + 5.5% = 47.5% |
| 3 children | 40% + 2% + 7.7% = 49.7% |
| 4 children | 40% + 2% + 9.9% = 51.9% |
Scottish taxpayers: substitute 42% for 40% (higher rate above £43,662).
Why most other HICBC calculators are wrong
A large fraction of the calculators still returned by Google search — including some from major money sites — use the old thresholds (£50k–£60k, 1% per £100). This means anyone earning £55k with 2 kids gets told they owe £275 when the actual 2024/25 answer is £0. Always check the tool cites £60,000 as the lower threshold before trusting the number.
Uses 2024/25 UK tax rules (HICBC reformed by Spring Budget 2024). Not tax or investment advice — check with an accountant if you're near the £80,000 upper threshold and considering significant pension moves.
Earning near £100k with kids?
Above ~£85k the Personal Allowance taper starts eating your income at 60% — while HICBC is already gone. The £100k Trap Escape Toolkit models salary sacrifice, bonus timing and SIPP top-ups side-by-side and finds the optimal split for £60k–£150k earners with kids. £19 one-off, 7-day refund.
Frequently asked questions
What changed in April 2024?
The High Income Child Benefit Charge (HICBC) thresholds moved. The lower threshold — where the charge kicks in — rose from £50,000 to £60,000. The upper threshold — where 100% of Child Benefit is clawed back — rose from £60,000 to £80,000. The withdrawal rate is now 1% per £200 of adjusted net income above £60,000 (previously 1% per £100). Most online calculators still use the old numbers.
Who pays the charge — the higher earner or the claimant?
The higher earner in the household pays HICBC, regardless of who claims the Child Benefit. If both partners earn between £60k and £80k, whichever has the higher adjusted net income is liable. It's reported on that person's Self Assessment tax return. Non-married couples living together are treated as one household for HICBC purposes.
What is 'adjusted net income'?
Adjusted net income is your total taxable income (salary, bonus, self-employment, rental, dividends, interest) minus: (1) your own gross pension contributions to registered schemes (relief-at-source grossed up), (2) Gift Aid donations grossed up, and (3) trading losses. Employer pension contributions do not reduce it. This is the figure HMRC uses for HICBC.
How much is Child Benefit in 2024/25?
£25.60 per week for the eldest / only child (£1,331.20 per year) and £16.95 per week for each additional child (£881.40 per year). So 1 child = £1,331.20/yr, 2 kids = £2,212.60/yr, 3 kids = £3,094.00/yr, 4 kids = £3,975.40/yr. Paid every 4 weeks, tax-free at source — the tax comes back through HICBC via Self Assessment.
Is the pension top-up strategy really worth it?
In the £60k–£80k range with 2+ children, absolutely. Every £1 you contribute to a pension reduces adjusted net income by £1, which cuts HICBC by 1p × number of children × Child Benefit weeks. With 2 kids, a £1,000 pension contribution saves £110.63 of HICBC on top of the ~£320 higher-rate tax relief — an effective ~74% relief on that £1,000. With 3 kids the effective rate exceeds 80%. This is the single best-value pension contribution most middle-earner parents can make.
Should I just stop claiming Child Benefit?
No — you should still register even if you opt out of payments. Registration gives the non-earning parent National Insurance credits toward State Pension (worth ~£300/year in retirement per year of credit). And you can restart payments at any time. HMRC's default suggestion of 'just stop claiming' is bad advice — always claim, then decide whether to receive payments.
What's the effective marginal tax rate in the £60k–£80k band?
For a higher-rate taxpayer with 2 children: 40% income tax + 2% NI + 5.5% HICBC clawback = ~47.5% effective. With 3 children: 40% + 2% + 7.7% = ~49.7%. With 4 children: ~52%. It's not as brutal as the £100k trap (60%+), but it's the single sharpest reason for £70k parents to salary-sacrifice into a pension.
What about Scottish taxpayers?
HICBC uses UK-wide thresholds (Westminster-set) and applies identically in Scotland, England, Wales and NI. Only the income tax rates on your salary differ. A Scottish taxpayer at £70k with 2 kids faces the same £605 HICBC as an English one — but the pension top-up saves at a 42% Scottish higher rate instead of 40%, making the effective relief slightly better.
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