High Income Child Benefit Charge: 2025/26 Threshold Guide

You might have heard about the High Income Child Benefit Charge to be scrapped, but as of 2025/26, the policy is still in place, and families earning over £60,000 should plan ahead. Read on to see how it works and what you can do to steer clear of unexpected charges.

Key Takeaways

• The High Income Child Benefit Charge still applies in 2025/26 if your income is over £60,000, which is fully clawed back at £80,000.

• You can reduce or avoid the charge with pension contributions, Gift Aid donations, or opting out of payments while keeping NI credits.

2025/26 High Income Child Benefit Charge Limits

The Child Benefit threshold 2025/26 remains unchanged - you start repaying once your income exceeds £60,000, and it’s fully clawed back at £80,000.

• If your income is between £60,000 and £80,000, you’ll repay 1% of your Child Benefit for every £200 over £60,000.

• Once your income hits £80,000, you’ll have to repay 100% of the Child Benefit received.

• The charge is based on the income of the higher earner, even if the other partner is the one receiving the payments.

This means that even a small increase in income can reduce the benefit you get or wipe it out entirely. If you’re in this income band, it’s important to check whether claiming Child Benefit is still worth it or if you might face a surprise tax bill.

How to Avoid Unexpected Charges

If your income is close to or just over £60,000, you can reduce or avoid the High Income Child Benefit Charge with some simple planning:

• Make pension contributions: Payments into a registered pension lower your “adjusted net income”, which could bring you back under the £60,000 threshold and reduce or remove the charge altogether.

• Use Gift Aid donations: Donating to charity through Gift Aid also reduces your adjusted net income and can help cut down the amount you owe.

• Opt out of payments (but still claim the benefit): You can stop receiving Child Benefit payments while still claiming the benefit itself. This keeps your National Insurance credits (important for your State Pension) without triggering a tax charge.

Not sure which of these steps applies to you or how to make them work in your situation? BOOK A QUICK, FREE CALL with one of our expert accountants. We’ll walk you through your options, check your income position, and help you avoid a last-minute tax shock.

What We Think

Many find the High Income Child Benefit Charge unfair, especially those earning just over the threshold who end up repaying most or all of the benefit.

We’ve seen how unclear HMRC’s guidance can be, particularly around “adjusted net income”. It’s easy to miss the fine print and end up with a surprise bill.

We believe the system could be simpler and better communicated. Until then, what makes the biggest difference is planning ahead. Small steps like pension contributions or Gift Aid donations can help reduce your tax bill and avoid headaches at year-end.

How JAFA Can Help

At JAFA, we help you spot potential tax charges before they become a problem. If your income is near the £60,000 mark, we’ll forecast your position early and walk you through ways to reduce your adjusted net income like pension contributions, Gift Aid, or salary adjustments.

We also take the confusion out of Child Benefit decisions. Whether you should claim, opt out, or plan around the charge, we’ll explain your options clearly.

And if you’re already affected by the charge, we’ll handle the Self Assessment process or explore PAYE solutions once they’re live.

If you're not sure where you stand or want to avoid a last-minute scramble at tax time, BOOK A QUICK FREE CALL with us. A 15-minute chat now could save you hundreds later.