Breakdown
How it works
Child benefit is £27.05 a week for the eldest and £17.90 for each other child. If the higher earner's adjusted net income exceeds £60,000, 1% of the benefit is clawed back for every £200 over, so it is fully repaid at £80,000. Pension contributions and Gift Aid reduce adjusted net income, which is why a contribution can restore the whole benefit.
Formula
Worked example
Two children, £65,000 income: benefit £2,337; charge 25% = £584; keep £1,753. A £5,000 gross pension contribution removes the charge entirely.
Frequently asked questions
Should I still claim if I earn over £80,000?
Yes — claim and opt out of payments. It protects the claiming parent's NI credits towards the State Pension and gets the child a National Insurance number automatically.
How is the charge paid?
Through Self Assessment, or from 2025 through your PAYE tax code if you opt in.
Is it per household?
No, only the higher earner's income counts. Two parents on £59,000 each keep the full benefit; one earner on £80,000 loses it all.