Child Benefit Charge and Pension Calculator
Child Benefit is a government payment to help with the cost of raising children. If either parent or their partner has adjusted net income above £60,000, some or all of it may be recovered through the High Income Child Benefit Charge. The AbraTax calculator compares an estimated charge and Income Tax before and after an entered relief-at-source pension contribution. It does not recommend a contribution.
Who This Calculator Is For
This calculator is useful for:
- Families receiving Child Benefit where one person in the household has income above £60,000
- People illustrating how an entered pension contribution changes the modelled charge
- Newly separated or blended families reviewing how the rules may apply
What You Need to Know
How Child Benefit Works
Child Benefit is paid for each eligible child. The weekly rates are:
- 2025/26: £26.05 for the eldest or only child and £17.25 for each additional child
- 2026/27: £27.05 for the eldest or only child and £17.90 for each additional child
These amounts may be subject to the High Income Child Benefit Charge.
The High Income Child Benefit Charge
If either you or your partner has adjusted net income above £60,000, the higher earner normally pays a charge equal to 1% of the Child Benefit received for every £200 of adjusted net income above £60,000. At £80,000, the charge equals the full amount of Child Benefit received.
The charge applies to the individual with the higher adjusted net income, even if they did not claim the benefit.
How Pension Contributions Are Reflected
Because the charge is based on adjusted net income, some pension contributions reduce the income figure used in the calculation. If adjusted net income is £60,000 or below, no charge is due, subject to all other conditions. The calculator does not determine whether a contribution is available or suitable.
How to Use the Child Benefit and Pension Calculator
- Select the tax year and where the higher earner lives.
- Enter the higher earner's employment income, other non-savings taxable income, taxable savings interest, and dividends separately.
- Enter the actual total Child Benefit received during the tax year; the calculator does not derive it from the number of children.
- Add existing gross relief-at-source pension contributions and Gift Aid donations.
- Enter an additional net pension amount to compare the two modelled scenarios.
Frequently Asked Questions
How do opting out of payments and ending a claim differ?
Opting out of payments and ending a Child Benefit claim are different. Subject to the eligibility conditions, a registered claimant can retain National Insurance credits while opting out of payments. This calculator does not compare those options or determine eligibility.
Does my partner's income affect the charge?
The charge applies to the higher earner. If the higher earner changes during the year, responsibility can also change. Partnership periods and eligibility are not determined by this calculator.
What is adjusted net income?
Adjusted net income is broadly total income less specified deductions, including grossed-up relief-at-source pension contributions and Gift Aid donations. It is also used for the Personal Allowance taper above £100,000.
Does contribution timing affect this calculator?
The calculator uses annual amounts and does not model payment dates, provider deadlines, pension limits, or the availability of a contribution.
How do I pay the High Income Child Benefit Charge?
You can report the charge through Self Assessment. If you are employed and pay tax through PAYE, HMRC may be able to collect it by adjusting your tax code. Contact HMRC or use its guidance to confirm the route for your circumstances.
Limits of This Illustration
National Insurance credits attached to a Child Benefit claim can contribute towards State Pension entitlement for an eligible claimant who is not working or has low earnings. The calculator does not model those credits.
Pension contributions can affect adjusted net income. Existing pension provision, contribution limits, affordability, and wider financial circumstances are outside this calculator.
If adjusted net income is close to £60,000, a change in the entered amount can affect the modelled charge. The actual charge depends on the complete facts.
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