Most people with a new baby hear about the £100,000 cliff. The £60,000 line gets less attention, but it affects far more families, and it arrives during the same first year when income is already uneven.
How the charge works
Child Benefit itself is paid whatever you earn. The High Income Child Benefit Charge is a separate tax bill that takes some or all of it back. It starts when the adjusted net income of either partner goes over £60,000 and builds up by 1% of the benefit for each £200 above that. At £80,000 the whole amount is repaid.
Adjusted net income is total taxable income minus gross pension contributions and Gift Aid. It is not just salary. The adjusted net income guide covers what counts.
A worked example for one child
At £27.05 a week, one child brings in about £1,407 a year. Say the higher earner has adjusted net income of £70,000. That is £10,000 over the line, or 50 steps of £200, so the charge is 50% of the benefit: about £703. At £65,000 it would be 25%, about £352. At £80,000 it is the full £1,407.
Each £200 of extra income adds about £14 of charge for one child. On top of 40% tax that is an extra 7% on income in the band, and with two children it is nearer 12%. The band is not as steep as the £100,000 cliff, but it is a real extra cost on bonuses and pay rises.
Your three options
- Claim, take the payments, and pay the charge through PAYE or Self Assessment. This makes sense when income is only just over £60,000 and you will keep most of the benefit.
- Register, then opt out of payments, so no charge arises. This is usually cleaner near or above £80,000 where you would repay everything anyway.
- Bring adjusted net income down with a pension contribution or Gift Aid, which can cut or remove the charge and may help with other thresholds too.
Who should claim
The charge falls on whichever partner has the higher adjusted net income, whoever claims. The lower earner can still be the claimant, which can be useful for National Insurance credits when they are on leave. Check which arrangement fits your household before you register.
Check these before you decide
- Your expected adjusted net income for the whole tax year, including bonus, dividends and savings interest.
- Whether a pension contribution or [salary sacrifice](salary-sacrifice-pension-100k-childcare-eligibility) would move you under a threshold.
- Whether you already file Self Assessment, since that can affect how you pay the charge.
- Whether either parent is close to £100,000, where [childcare support is also tested](how-the-childcare-cliff-works).
General information, not personal financial or tax advice. Rules and rates checked on GOV.UK on 2 October 2026. Check the official sources for your own circumstances.
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