The charge applies if you or your partner have adjusted net income over £50,000 and receive Child Benefit.

Adjusted net income includes all taxable income minus certain deductions like pension contributions and gift aid.

If both partners earn over £50,000, the one with the higher income is responsible for the charge.

You must report the charge through Self Assessment if you're liable, even if you normally don't file a return.

The charge is 1% of the Child Benefit for every £100 of income over £50,000, up to a maximum.

If income is £60,000 or more, the charge equals the full Child Benefit amount received that tax year.

Child Benefit rates are £21.80 per week for the first child and £14.45 per week for additional children (based on 2025/26 rates).

You can opt out of receiving Child Benefit to avoid the charge, but this might affect state pension credits for the claiming parent.

The charge is calculated based on the tax year (April to April), so income fluctuations during the year matter.

Keeping accurate records of income, Child Benefit payments, and any deductions is crucial for compliance and avoiding penalties.