👶 2026/27 · HICBC & Salary Sacrifice

Child Benefit & 60% Tax Trap Calculator

Check if the High Income Child Benefit Charge will push you into the 60% tax trap. Use our calculator to see how pension salary sacrifice can help you claim it back.

Household details

Earner 1

£
£

Earner 2 (Optional)

£
£

Annual Child Benefit

£1,355

£26.05/week · 1 child

How Child Benefit and HICBC work

Child Benefit is a universal payment from HMRC. However, if either parent has an "adjusted net income" above £60,000, the High Income Child Benefit Charge (HICBC) claws some or all of it back through Self Assessment.

The Household Income Injustice

The HICBC only looks at individual income, not combined household income. This creates a known unfairness in the system:

  • A couple where both earn £59,000 (total £118,000) pay £0 charge.
  • A single parent earning £80,000 loses the benefit entirely.
💡 Use Salary Sacrifice to escape the charge

HMRC calculates the charge based on your Adjusted Net Income. Pension contributions made via Salary Sacrifice legally reduce this figure. By increasing your pension contributions, you can drop your adjusted net income below £60,000 and keep your full Child Benefit.

Source: GOV.UK HICBC

Related tools

🪤
£100k Tax Trap Calculator
Check if you're hitting the 60% rate
→🏠
Take-Home Pay Calculator
Full salary breakdown
→💰
Salary Sacrifice Calculator
See your pension tax savings
→

Child Benefit FAQs

What is the High Income Child Benefit Charge?
The HICBC is a tax charge that claws back Child Benefit if either parent earns over £60,000 per year. You lose 1% of your Child Benefit for every £200 above £60,000. At £80,000 or above, the charge equals 100% of the benefit.
How much is Child Benefit in 2026/27?
For 2026/27, Child Benefit is £26.05 per week for the eldest/only child and £17.25 per week for each additional child. That's £1,354.60/year for one child, £2,251.60/year for two, and £3,148.60/year for three.
Should I still claim Child Benefit if I earn over £80,000?
Yes — it's usually still worth claiming even if the charge wipes out the cash benefit. Claiming ensures the lower-earning parent gets National Insurance credits towards their State Pension. You can opt out of payments but still register the claim.
Which partner's income counts for HICBC?
The charge applies to whichever parent has the higher income — regardless of who actually claims the benefit. The injustice is that a household with two earners making £59,000 each pays no charge, while a household with one earner making £80,000 loses the benefit entirely.
Can I use salary sacrifice to avoid HICBC?
Yes. Pension contributions via salary sacrifice reduce your 'adjusted net income'. If you earn £65,000 but sacrifice £5,000 into a pension, your adjusted net income drops to £60,000, eliminating the HICBC entirely and restoring your full Child Benefit.
Do I need to file a Self Assessment for HICBC?
Yes. If you or your partner earn over £60,000 and claim Child Benefit, the higher earner must register for Self Assessment and declare the charge. Failure to do so can result in penalties.