If you or your partner earn over £60,000 and claim Child Benefit, some or all of it gets clawed back through the tax system — a rule that catches a surprising number of people off guard.
How the charge works
Once the higher earner in a household earns over £60,000, 1% of Child Benefit is repaid for every £200 earned above that threshold. By £80,000, the entire benefit is effectively cancelled out.
The trap people fall into
The charge applies based on the higher earner’s individual income, not household income — so two parents each earning £55,000 (£110,000 combined) pay no charge at all, while a single earner on £75,000 with a non-earning partner pays a substantial one. It catches people by surprise because it doesn’t feel fair, even though it’s how the rule is written.
What to do about it
You can still claim Child Benefit and simply repay the charge via Self Assessment, or opt out of receiving the payments while keeping the National Insurance credits that come with the claim — worth choosing deliberately rather than by default.
Model your own position with the Payslp salary calculator and budget planner.
A concrete worked example
A single earner on £70,000 with a partner earning £20,000, claiming Child Benefit for two children, would face a charge equal to 50% of what they receive (since £70,000 is £10,000 above the £60,000 threshold, at 1% per £200 = 50%) — despite household income of £90,000 being lower than two parents each earning £50,000, who would face no charge at all.
Frequently asked questions
Do I have to fill in Self Assessment just because of this charge?
Yes, if you’re liable for the charge and don’t already file Self Assessment for another reason, you need to register and file specifically to report and pay it.
Can pension contributions help avoid the charge?
Yes — since the charge is based on “adjusted net income,” a pension contribution that brings your income back under £60,000 can reduce or eliminate the charge, while also getting full tax relief on the contribution itself.