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The short answer
The High Income Child Benefit Charge applies if you or your partner have adjusted net income over £60,000, GOV.UK says, for tax years from 2024 to 2025. It takes back 1% of the Child Benefit for every £200 over £60,000, so at £80,000 you repay it all. The higher earner of a couple pays it, through PAYE or Self Assessment, and you can opt out of payments while staying registered to keep National Insurance credits.
Nigerian professionals in the UK, nurses on overtime, doctors, engineers and consultants, often cross the £60,000 line without noticing until a letter from HMRC arrives. The High Income Child Benefit Charge (HICBC) is a tax, not a cut in the benefit, which is why it surprises people: Child Benefit keeps arriving in one partner's account while the other partner owes tax on it.
The thresholds
| Tax year | Charge starts at | Rate | All repaid at |
|---|---|---|---|
| 2024 to 2025 onwards | Over £60,000 | 1% of Child Benefit per £200 over | £80,000 |
| 2023 to 2024 and earlier | Over £50,000 | 1% per £100 over | £60,000 |
Figures from GOV.UK's HICBC page, checked October 2026. The test is adjusted net income, not salary. GOV.UK describes it as total taxable income, including savings interest and dividends, before Personal Allowances, reduced by certain reliefs such as pension contributions and Gift Aid.
Who pays in a couple
If both partners are over the threshold, GOV.UK says the higher earner pays the charge. It does not matter which of you receives the Child Benefit. If only one of you is over £60,000, that person pays. The charge is assessed on each person's own income, not household income, so a couple each earning £55,000 pays nothing, while a household with one earner on £70,000 pays.
A worked example
Example only, using GOV.UK's charge rules and the October 2026 Child Benefit rates (£27.05 a week for the eldest child, £17.90 for each other child). Ngozi earns an adjusted net income of £70,000 and has two children. Her partner earns less.
- Child Benefit for two children: £44.95 a week, or £2,337.40 over 52 weeks.
- Income over £60,000: £10,000.
- £10,000 divided by £200 is 50, so the charge is 50% of the Child Benefit.
- Charge: 50% of £2,337.40, or £1,168.70.
- The family keeps £1,168.70 of the year's Child Benefit.
If Ngozi paid an extra £5,000 into a pension that reduces adjusted net income, her figure would fall to £65,000, the charge to 25%, or £584.35, and the family would keep £1,753.05. The pension payment itself also attracts tax relief. Whether that suits you depends on your wider finances; this is information, not tax advice.
Situations that catch families out
- An overtime year. A nurse whose basic pay is below £60,000 can cross it in a year with heavy overtime or back pay. The charge is worked out on each tax year's adjusted net income, so it can apply one year and not the next.
- A new partner moves in. The charge looks at the partner you live with. If your new partner earns more than £60,000, they may become liable for Child Benefit you receive for your children.
- Income from Nigeria. Rent or interest that is taxable in the UK is part of adjusted net income, and can tip you over the line even if your UK salary is below it.
- Ignoring a letter. If HMRC writes to you about the charge, reply. The PAYE and Self Assessment routes above have deadlines.
Working out your adjusted net income
- Start with your gross taxable pay from your P60 or payslips.
- Add other taxable income: savings interest, dividends, rental profit, freelance profit, and any foreign income taxable in the UK.
- Subtract the reliefs GOV.UK mentions, such as pension contributions and Gift Aid, where they reduce adjusted net income.
- Compare the result with £60,000 and £80,000.
Opting out of payments
If you expect to pay all or most of the charge, you can stop the payments. GOV.UK says that if you opt out:
- you stay registered for Child Benefit but receive no payments
- you do not pay the charge
- you keep National Insurance credits towards your State Pension
- your child still gets a National Insurance number without applying shortly before age 16
The registration is worth keeping even when you are paid nothing. For a parent who stays home with young children, those credits can fill gaps in their National Insurance record. Do not cancel the claim entirely.
Paying the charge
GOV.UK says you can pay through PAYE or Self Assessment. You must use Self Assessment if you already file a return for another reason, such as self-employment or savings interest, or if you pay later than 31 January after the tax year; GOV.UK's example is that for the tax year starting 6 April 2025, payment after 31 January 2027 must go through Self Assessment. If you only used Self Assessment for this charge, you can phone HMRC to switch back to PAYE.
Nigerian income counts too. If you have rental income in Lagos or interest from Nigerian investments that is taxable in the UK, it forms part of adjusted net income; see declaring Nigerian income on Self Assessment.
Where Pryme fits
If you keep receiving Child Benefit while owing part of it back, holding that money in a separate GBP balance makes the tax bill easier to meet. A Pryme account holds GBP with UK local account details alongside naira. See Child Benefit rates and multicurrency accounts.
Questions people ask
What is the High Income Child Benefit Charge threshold?
From 2024 to 2025, the charge applies to adjusted net income over £60,000, and the whole benefit is repaid at £80,000.
Who pays the Child Benefit tax charge, me or my partner?
The partner with the higher adjusted net income, if that income is over £60,000. It does not matter who receives the benefit.
Should I stop Child Benefit if I earn over £80,000?
You can opt out of payments but stay registered. GOV.UK says you keep National Insurance credits and avoid the charge.
Do pension contributions reduce the charge?
GOV.UK says adjusted net income is reduced by certain reliefs, including pension contributions, which can lower the charge.
Sources
- GOV.UK: High Income Child Benefit Charge · accessed Oct 2026
- GOV.UK: Child Benefit · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.