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Is it worth claiming Child Benefit if I earn over £60,000?
How the High Income Child Benefit Charge works, and why it can be worth claiming even if you're a higher earner
Earn more than £60,000 a year, and though you might receive full Child Benefit, you'll later have to pay some of it back via self-assessment – known as the High Income Child Benefit Tax Charge. This could seem more hassle than it's worth, but there are important advantages to claiming, including one that can be worth £1,000s in future State Pension payments for your partner (or another relative who helps with childcare).
There's more to Child Benefit than the monthly payment

Child Benefit is designed to be a contribution towards the time and financial costs of raising a child. It's paid every four weeks (usually) and you can get it for each child you're responsible for looking after under the age of 16 (or under 20 if they stay in certain full-time education or unpaid training). It's a standard amount of £24 a week for your first child, and £15.90 a week for any further children.
If you have an income of £60,000 or more a year (or your partner, if you live together, has an income of £60,000 or more), you'll end up with less as you'll have to pay some of the benefit back.
Once your annual income hits or exceeds £80,000 (or the income of your partner, if you live together, hits or exceeds £80,000), you'll have to pay back the full amount – or simply opt out of the payment.
However, in both cases you'll still qualify for the non-financial benefits that come with claiming Child Benefit.
Register for Child Benefit regardless of what you earn
Even if you (or/and your partner) are a high earner and don't qualify to keep the full amount, it's still worth considering applying for the sake of the following extra benefits:
- You'll get National Insurance (NI) credits for claiming Child Benefit until your child turns 12. These count towards your State Pension. Most need at least 35 years' worth of NI credits to receive the full State Pension, so this is especially important if one of you is a non-earner or makes less than £123 a week (which is how much you need to earn to qualify for automatic NI credits). HMRC reckons 200,000 parents are losing out on credits because the partner with a higher income is registered for Child Benefit, and they haven't applied to transfer the credits over.
- You can also transfer these NI credits to another relative (such as a grandparent) if they contribute to the care of your child.
- Your child will be registered to receive a NI number shortly before they turn 16 without you having to apply.
If one of you does earn £80,000 or more, you can claim Child Benefit (in order to keep your entitlement to NI credits), but opt out of receiving the payment. You can do this by ticking the relevant box on the form when you apply. If you didn't do this when you applied, you can do it later on the HM Revenue & Customs (HMRC) app.
Important: There's only one National Insurance credit available with each Child Benefit claim (even if you have more than one child), so if there are multiple people responsible for a child, it's worth ensuring the right person is transferred the credits.
Make sure the right person is claiming
If you're in a couple and claiming Child Benefit – or you aren't claiming at all because one of you earns £80,000 or more a year – you could be missing out on £1,000s or even £10,000s in future State Pension payments.
There are many people who don't claim Child Benefit at all because one partner earns over £80,000. But if the other partner isn't working, or there's another relative on a low income who helps with childcare, they could be claiming Child Benefit to get the National Insurance credits.
Watch: MSE founder Martin Lewis explain how this works on The Martin Lewis Money Show...
This was filmed in 2023 and Martin references the £60,000 earnings threshold (the point at which you need to pay back Child Benefit payments in full if you're claiming). This threshold has since been raised to £80,000 – as referenced in this guide.
From The Martin Lewis Money Show Live on Tuesday 21 November 2023, courtesy of ITV. All rights reserved. Watch the full episode on ITVX.
Only one parent can claim National Insurance credits via Child Benefit, so if one partner earns over £80,000 and has been claiming, you'll have to transfer the credit to the lower earner. You can do this by filling in the CF411A form.
HMRC reckons 200,000 parents are losing out on credits because the partner with a higher income is registered for Child Benefit, and they haven't applied to transfer the credits over.
If you want to transfer the credit to a family member who isn't a parent and your child is under 12 you'll need to fill in form CA9176 (see our Grandparents' childcare credit guide for more info).
'Thank you for helping my husband top up his State Pension for free. We applied to transfer eight years' worth that I had received by claiming Child Benefit while working. Our claim was successful. We'd thought about paying to top up his contributions but couldn't afford it. It will make a real difference to us.'
– Jamie
Earn between £60K & £80K? You'll be better off claiming... but there's admin

If you (or your partner, if you live with one) earn more than £60,000 a year, HMRC will pay you the full amount of Child Benefit, but you'll later have to submit a self-assessed tax return and pay some of it back. This is known as the 'High Income Child Benefit Tax Charge'.
How it works
The amount of Child Benefit you'll have to pay back is tapered, so the more you earn over £60,000 a year, the more you need to pay back.
- For every £200 you receive above £60,000, you need to pay back 1% of the maximum amount of Child Benefit you're entitled to. So, if you earn £70,000 a year, you'll pay back 50%.
- Once you hit £80,000 a year, the charge you'll pay back is equal to 100% of your entitlement.
If you're not sure if you're liable to pay the tax charge or you're not sure how much you need to pay, use the Government's Child Benefit Tax Calculator to double check.
How do I pay the High Income Child Benefit Tax Charge?
If you or your partner, or both of you, receive an annual income of £60,000 or more, the partner with the highest income MUST fill in a self-assessment tax return – even if you're already paying tax via your employer in the pay-as-you-earn system.
You'll have to register for self-assessment and send in a tax return every year. If you do need to pay the charge, and don't file a tax return, you could be fined up to 30% of what you owe by HMRC.
Top tip: If you're claiming and worry you may need to pay the tax charge, you could keep the money in a separate savings account. That way, you'll be covered if you need to pay the charge and anything you get to keep is a bonus. You'll also earn interest on the money. See our Top savings accounts guide for more details.
There are ways to get around this
If you don't want the administrative hassle of submitting a tax return and paying back some of the benefit, but still want to apply for Child Benefit for the non-financial advantages you have two choices:
- Opt out of the payments, either on the form when you apply, or using the HMRC app.
- Boost your pension contributions or charity donations to bring your 'adjusted net income' below £60,000.
Unsure if you'll fall foul of the charge? Get in touch with HMRC
If you've had a change of circumstance, or you're unsure whether you're eligible for Child Benefit or liable for the High Income Benefit Charge, get in touch with HMRC directly on 0300 200 3100.
If you don't know if your partner is receiving Child Benefit, or has a higher adjusted income than you (for example, because you live apart or have separated) you can write to HMRC and ask. It will just tell you "yes" or "no" – you won't get any financial details. You can only do this for a former partner if your relationship ended within a year of the tax year you want information for.
You can minimise the High Income Child Benefit Charge
If your income is £60,000 or more a year, you might still be able to swerve the charge. That's because it's based on your 'adjusted net income' (your total taxable income minus certain tax reliefs – for example, pension contributions and Gift Aid charity donations). So, if you pay any tax-deductible expenses, these might take you below the threshold, or at least reduce how much you may have to pay back.
You can minimise the charge by upping your pension contributions
Before considering doing this, see if your current pension contributions might already take your adjusted pay below £60,000. For example, if you're on £63,000 a year and contribute 5% of your salary into your pension, you're adjusted net income will be £59,850 and you won't have to pay any charge.
ALL types of pension can help to reduce your adjusted net income, and therefore the amount you'd be liable to pay. This includes self-invested personal pensions, any additional voluntary contributions as well as any other contributions to workplace or personal pensions (and it doesn't matter if you were auto-enrolled or not). It does NOT include Lifetime ISAs.
How you calculate how much pension contribution to take away depends on whether it's going from your before-tax or after-tax pay:
- Employer pension scheme: If it goes straight from your before-tax ('gross') pay into a pension, for example an employer pension scheme, you can deduct that same gross amount. Usually the figure on your P60 will already reflect the deduction and is the amount to enter in the adjusted net income calculation with no further deduction.
- Personal pension: If it comes out of your after-tax ('net') pay, for example if you have a personal pension, you can deduct more – £100 for every £80 you pay in if you pay tax at 20%, and £133 for every £80 you pay in if you pay tax at 40%.
Here's an example...
Peter earns £63,000 a year, but 7% of his pre-tax income (£4,410) is used to make pension contributions. To see if Peter needs to pay the tax charge, we need to deduct £4,410 from his actual salary – leaving £58,590. In this case, Peter's pension contributions take him below the threshold, so he won't need to pay the tax charge.
If Peter wasn't making any pension contributions, he'd have to pay the charge, as his before-tax income would be over the threshold.
You can find a detailed breakdown of what does and doesn't count towards your adjusted net income on the Gov.uk website.
Earn £80k or more? It can still be worth claiming
If you or your partner have an income of £80,000 or more, it's still worthwhile filling in the Child Benefit form and registering your entitlement – even if you opt out of actually receiving the benefit itself. Doing so has a couple of advantages:
- You'll get National Insurance (NI) credits, which count towards your State Pension. Most need at least 35 years' worth of NI credits to receive the full State Pension, so this is especially important if one of you is a non-earner or makes less than £123 a week (which is how much you need to earn to qualify for automatic NI credits).
- Your child will automatically be registered to receive a NI number shortly before they turn 16.
How do you claim Child Benefit?

To claim Child Benefit, you'll have to fill in the 'CH2' form found at Gov.uk. You can either make the claim online, or download the form and post it to the address on the form, as soon as you've registered the birth of your child. You can also check if you're eligible and apply through the new HMRC app.
If you adopted your child, you can apply as soon as a child comes to live with you, and you'll need to send their original adoption certificate with the form. If you've lost it, you can order a new certificate.
If your child's birth was registered in Northern Ireland or outside the UK, you'll need to provide your child's original birth certificate. If you've lost it, you can order a replacement birth certificate. If the birth was registered outside the UK, you'll also need to provide the passport used for your child to enter the UK.
You can claim Child Benefit at any time until your child turns 16 (or 20 in some cases)
If you didn't claim Child Benefit when your child was born – either because you earned too much, or you didn't realise you were eligible – it's not too late. You can apply at any age up until 16 (or up to 20 if your child is in qualifying full-time education), following the process above.
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