Child Benefit is clawed back between £60,000 and £80,000. Salary sacrifice can recover all of it. Your exact figures.
| Children | Full Annual CB | Lost at £80k+ | Eff. Marginal Rate £60k-£80k |
|---|---|---|---|
| 1 child | £1,331.60 | £1,331.60 | ~47% |
| 2 children | £2,212.60 | £2,212.60 | ~51% |
| 3 children | £3,093.60 | £3,093.60 | ~56% |
| 4 children | £3,974.60 | £3,974.60 | ~60% |
For every £200 of adjusted net income above £60,000, 1% of your full annual Child Benefit is charged. At £70,000 (£10,000 over threshold) you pay a charge equal to 50% of your Child Benefit. At £80,000 and above the charge equals 100%.
Pension salary sacrifice reduces your adjusted net income. If you earn £75,000 with two children, sacrificing £15,000 brings adjusted income to £60,000 — recovering the full £2,212.60/year in Child Benefit, plus saving income tax and NI on the contribution itself.
Many high earners have opted out to avoid HICBC admin. But the non-working parent may miss National Insurance qualifying years for their State Pension. Stay opted in and handle via Self Assessment — or use salary sacrifice to stay below the threshold.
What is the HICBC?
The High Income Child Benefit Charge claws back Child Benefit for families where the highest earner has adjusted net income above £60,000. Above £80,000 the charge equals 100% — effectively eliminating Child Benefit.
How much Child Benefit can I lose?
For one child: £1,331.60/year. Two children: £2,212.60. Three children: £3,093.60. The HICBC recovers 1% per £200 of income between £60,000 and £80,000.
Can salary sacrifice recover my Child Benefit?
Yes. Salary sacrifice reduces adjusted net income for HICBC purposes. Sacrifice enough to bring income below £60,000 and you recover all Child Benefit, plus save income tax and NI on the contribution.
Should I opt out of Child Benefit if I earn over £60,000?
In most cases no. Opting out means losing National Insurance qualifying years for the non-working parent — each missing year reduces their State Pension. It is better to stay opted in, pay the HICBC via Self Assessment, and use salary sacrifice to reduce adjusted net income below the threshold if possible.
What if both parents earn over £60,000?
The HICBC is assessed on the individual with the HIGHER adjusted net income, not jointly. If both parents earn over £60,000, the charge applies to the higher earner only. Importantly, both parents could theoretically each receive Child Benefit for different children, but in practice Child Benefit is claimed for the household, and only one payment is made.
Free, accurate, 2026-27 rates. Scotland and tax code supported.