High-Income Child Benefit Charge: What You Need to Know in 2024 and Beyond
The high-income child benefit charge continues to affect thousands of UK families, especially those with uneven household earnings.
With new thresholds introduced in April 2024 and a major shift to household-based assessment planned for April 2026, understanding how the high-income child benefit charge works—and how to mitigate it—is more important than ever.
What Is the High-Income Child Benefit Charge?
The high-income child benefit charge is a tax applied when one partner in a household earns above a certain threshold.
Historically, this threshold was £50,000, with the charge increasing by 1% of the child benefit received for every £100 of income above that level.
Once income reached £60,000, the entire benefit was clawed back.
From 6 April 2024, the threshold rises to £60,000, and the clawback rate slows to 1% for every £200 above that.
Full clawback now occurs at £80,000, offering partial relief to many families.
High-Income Child Benefit Charge: Key Changes from April 2024
- Threshold Increase: The charge now begins at £60,000 instead of £50,000.
- Slower Clawback: 1% for every £200 above the threshold, rather than every £100.
- Full Charge Point: Child benefit is fully clawed back at £80,000 adjusted net income.
This means families with income between £60,000 and £80,000 will retain some child benefit, depending on their exact earnings.
Household Income Reform: What’s Coming in April 2026
Currently, the high-income child benefit charge is based on individual income.
This has led to unfair outcomes—for example, a couple earning £59,999 each (combined £119,998) keeps all their child benefit, while a single-earner household at £80,000 loses it entirely.
From April 2026, the charge will be based on household income, aiming to correct this imbalance.
While full details are pending, this reform is expected to affect many dual-income families who previously avoided the charge.
Preserving National Insurance Credits
Even if you opt out of receiving child benefit to avoid the high-income child benefit charge, it’s crucial to still claim it.
Doing so secures National Insurance credits, which count toward your state pension entitlement—especially important for non-working parents.
Example: How the Charge Works in Practice
Gemma and George have two children. Gemma has no income. George earns £70,000 in 2024/25.
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Under the new rules, George’s income exceeds the £60,000 threshold by £10,000.
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At 1% per £200, this results in a 50% clawback of their child benefit.
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In 2023/24, the same income would have triggered a full clawback.
How Trueman Brown Can Help You Navigate the High-Income Child Benefit Charge
At Trueman Brown, we help families understand and manage the high-income child benefit charge with clarity and precision. Whether you’re planning for the 2024 threshold changes or preparing for the 2026 household income reform, our team offers:
- Personalised tax planning
- Income structuring strategies
- National Insurance credit preservation
- HMRC compliance and reporting
📧 Email: 📞 Call: 01708 397262
Let us help you keep more of your child benefit while staying fully compliant.
FAQ: High-Income Child Benefit Charge
Q1: What is the high-income child benefit charge?
It’s a tax that claws back child benefit when one partner earns above a set income threshold.
Q2: What’s the threshold in 2024/25?
The charge starts at £60,000 and is fully applied at £80,000.
Q3: Will the rules change again?
Yes. From April 2026, the charge will be based on household income rather than individual income.
Q4: Can I avoid the charge by not claiming child benefit?
You can opt out of receiving payments, but you should still claim to preserve National Insurance credits.
Q5: How can Trueman Brown help?
We offer tailored advice to minimise the impact of the charge and ensure full compliance with HMRC
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