Income threshold is £50,000 for adjusted net income – this includes salary, bonuses, dividends, rental income, and other sources after certain deductions.

Charge rate is 1% of Child Benefit for every £100 of income above £50,000, up to £60,000 where it reaches 100% repayment.

Child Benefit amounts vary per child – for the 2025/26 tax year, it's £25.60 per week for the first child and £16.95 per week for additional children.

Adjusted net income calculation excludes some allowances like pension contributions, which can reduce your taxable income and potentially lower the charge.

If both partners earn over £50,000, the charge applies to the higher earner only, simplifying the assessment process.

You must report the charge through Self Assessment if affected – even if you're employed via PAYE, you may need to file a tax return.

Opting out of Child Benefit is possible to avoid the charge, but you should still register a claim to protect state pension credits for the non-working parent.

Penalties apply for late reporting or errors – HMRC can charge interest and fines if you don't declare the charge correctly.

The charge applies per household, not per child, so having multiple children doesn't change the income thresholds, only the total benefit amount clawed back.

Planning strategies include increasing pension contributions or gift aid donations to reduce adjusted net income below thresholds, but seek advice for tailored options.