Child Benefit: should you claim if you earn over £60,000?

Earning over £60,000 doesn't mean Child Benefit is a waste of time. There are two separate questions: will you keep the cash, and is there still a reason to claim?

The tax charge affects the first. National Insurance credits can make the second matter even if you keep little or none of the money.

The threshold is per person, not per household

The High Income Child Benefit Charge kicks in when either partner's adjusted net income goes over £60,000. Between £60,000 and £80,000, the charge is 1% of the Child Benefit for every £200 over the threshold. At £80,000 or more, the charge can equal the whole benefit. If both partners are over the threshold, the one with the higher income pays. HMRC: High Income Child Benefit Charge.

So two parents on £45,000 each are treated differently from one parent on £90,000. Adding two salaries together and comparing the total with £60,000 gives the wrong answer.

It isn't only married couples. "Partner" includes people living together as a couple. HMRC: High Income Child Benefit Charge.

Adjusted net income isn't what hits your bank account

Adjusted net income starts with your taxable income: salary, taxable benefits, savings interest, dividends. Some reliefs then come off it, including qualifying pension contributions and Gift Aid. Your Personal Allowance is not deducted. HMRC: Personal Allowances, adjusted net income.

The pension part needs care. Some employers take workplace pension contributions out of your pay before deducting Income Tax. GOV.UK: Tax on your private pension contributions, Tax relief. Those contributions are already out of your taxable pay, so don't take them off again. HMRC: Personal Allowances, adjusted net income, GOV.UK: Tax on your private pension contributions, Tax relief. If your pension provider claims basic-rate tax relief and adds it to your pot (known as relief at source), you take off the grossed-up amount: what you paid in plus the basic-rate tax relief. HMRC's adjusted-net-income guidance walks through the steps. HMRC: Personal Allowances, adjusted net income.

In a tax year that includes maternity leave, don't just use your contract salary. Work from what you actually expect to earn that year: pay before leave, pay after, and other taxable income. If the numbers aren't certain yet, keep the calculation provisional and revisit it.

An example: a partial charge still leaves something

Say the higher earner has adjusted net income of £70,000. That's £10,000 over the threshold. Divided by £200, the charge is 50%.

As an illustration, take 52 weeks at the 2026/27 weekly rate for an eldest child of £27.05. Child Benefit would total £1,406.60. A 50% charge takes about £703.30, leaving about £703.30. HMRC: Child Benefit, What you’ll get, HMRC: High Income Child Benefit Charge.

That's a simplified picture, not an exact annual figure or a tax return. The real amount depends on how many weekly payments fall in the tax year you're looking at (some tax years have 53), and HMRC rounds the figures down to whole pounds. A baby born partway through the year or a change in household also changes the result. Use HMRC's Child Benefit tax calculator with your own dates and income. HMRC: Child Benefit tax calculator.

You can claim without taking the money

Claiming and opting out of payments is not the same as never claiming. HMRC lets you stay registered for Child Benefit without receiving the cash. That can preserve National Insurance credits for the person who claims. HMRC: High Income Child Benefit Charge, Stop your Child Benefit payments.

Those credits, for someone claiming for a child under 12, help protect their State Pension record. They don't add money to a workplace or personal pension. If one parent isn't building a National Insurance record through work, that's worth knowing before you decide who claims. GOV.UK: National Insurance credits, Eligibility.

Don't assume it makes no difference whose name the claim is in. Check both National Insurance records if you can. Only one person can claim for each child. HMRC: Child Benefit, How to claim.

Taking the money comes with tax admin

You can take the payments and deal with the charge instead of opting out. HMRC now offers two ways to pay the charge: through PAYE or through Self Assessment, so a tax return isn't automatically the only option. HMRC: High Income Child Benefit Charge. You'll still need to use Self Assessment if you have to send a tax return for another reason, or if it's later than 31 January after the end of the tax year you're paying for. HMRC: High Income Child Benefit Charge.

Keep your claim dates and payment records with your income calculation. Opting out later doesn't cancel a charge on payments you've already had. HMRC: High Income Child Benefit Charge, Stop your Child Benefit payments.

If your income changes, look again. A decision based on last year's pay may not fit a year with leave, reduced hours, a bonus or a change of partner.

The useful decision is "claim, then work out the rest"

Before ruling it out, establish three things: your expected adjusted net income, which parent gains from the credits, and whether you'd rather take the cash and handle the charge or opt out of payments.

Timing matters here. Child Benefit can only be backdated up to three months from the date you make the claim. HMRC: Child Benefit, How to claim. Once you're registered, you can still choose to opt out of the payments. HMRC: High Income Child Benefit Charge, Stop your Child Benefit payments.

There's no need to rush into pension contributions or other tax planning to get under the threshold. Those moves have their own costs, restrictions and knock-on effects. A qualified tax adviser can help with the calculation; regulated financial advice may be worth getting before changing pension arrangements.