How this is calculated
Child Benefit is paid weekly at a higher rate for the eldest or only child and a lower rate for each additional child. The calculator multiplies these weekly rates by 52 to give an annual figure, then checks whether either parent's adjusted net income triggers the High Income Child Benefit Charge.
The charge applies when the higher earner in the household has adjusted net income between £60,000 and £80,000, clawing back 1% of the Child Benefit received for every £200 of income above the lower threshold, reaching a full 100% clawback at the upper threshold.
The calculator applies this sliding scale to your annual benefit figure to show both the charge and the amount you keep after it, which can be zero if the higher earner's income is at or above the upper threshold.
Why claiming still makes sense
Even where the charge wipes out the entire benefit, claiming Child Benefit and then opting out of receiving the payments (rather than not claiming at all) protects the claimant's National Insurance credits, which count towards the State Pension, and ensures the child is automatically issued a National Insurance number at 16.
Households where one partner is not working, perhaps caring for children, particularly benefit from this, since it is often their only route to building qualifying years towards the State Pension.
Managing the charge
Because the charge is based on individual, not household, income, a couple where each partner earns £55,000 pays no charge at all, while a couple where one partner earns £70,000 and the other earns nothing faces a substantial charge, even though total household income is similar or lower.
Pension contributions and Gift Aid donations reduce adjusted net income and can bring the higher earner back under a threshold, reducing or eliminating the charge, which is worth reviewing alongside the wider household tax position each year.
What this means for your company
Treat the result as a planning figure for the 2026/27 tax year. If it changes what you were about to do, take a director's salary, a dividend, a large asset purchase or a filing decision, check it against your own accounts first. We can review the position with you and confirm the tax treatment before you commit.
Frequently asked questions
Who has to pay the High Income Child Benefit Charge?
The partner in the household with the higher adjusted net income pays the charge if it exceeds £60,000, regardless of who actually claims or receives the Child Benefit payments.
Should I still claim if I know I'll pay it all back?
Yes, generally. Claiming and then choosing not to receive the payments protects your National Insurance credits towards the State Pension and secures your child's National Insurance number automatically at 16.
Is the charge based on household income?
No, it is based on the higher-earning individual's adjusted net income, not combined household income, which means two-earner households on similar incomes can be treated very differently from single-earner households.
How do I pay the charge?
The charge is reported and paid through self-assessment, or via a PAYE tax code adjustment if you do not otherwise need to file a return, and HMRC will expect you to register for self-assessment if you have not already.