Blog
Taxation
Should I still claim Child Benefit if I earn over £80,000?
Amy Woolliscroft17th September 2026
At Accession we work with many young professionals, in farming and rural businesses as well as across other sectors, and one question keeps coming up – ‘should I still be claiming Child Benefit now I earn over £80,000?’
Child Benefit can provide essential financial support for young families with all the pressures of modern living, however we know the financial implications of claiming this benefit are often misunderstood, particularly for those with higher earnings.
Child Benefit is a tax-free payment provided to parents or guardians, and it’s designed to help with the costs of raising children. For the 2026/27 tax year (starting 6 April 2026), the official UK Child Benefit rates are £27.05 per week for the eldest (or only) child, and £17.90 per week for each additional child, which can add up significantly over the years, supporting all sorts of costs that come with raising children while one or more parent is working.
Are you confusing salary with Adjusted Net Income?
However, there is a crucial caveat: if your Adjusted Net Income exceeds £60,000, you may be required to repay some, or all, of the benefit through the High-Income Child Benefit Charge (HICBC). Those with an Adjusted Net Income of £80,000 or more would be required to pay back all of the benefit through HICBC. Remember that tax regulations can change at any time and are subject to individual circumstances.
This leads to a bit of a dilemma: should you still claim it, even if it means having to repay it later?
One of our Accession Chartered Financial Planners and Directors, Emma Wilcock BSc (Hons) FPFS comes across one misunderstanding amongst young professionals more than any other – just what is Adjusted Net Income?
Emma said: “Many people see the £80,000 child benefit threshold and think that salary is what matters here, but Child Benefit considers your Adjusted Net Income, which is your total taxable income (including salary, rental income, dividends, and savings interest) minus certain deductions, such as contributions to pensions and gift aid payments.”
What this means is that even if you earn a salary that exceeds £80,000, your Adjusted Net Income could be lower if you have significant pension contributions or other eligible deductions that bring you below the threshold.
It’s also important to note that if you’re self-employed, your calculations might differ slightly due to business expenses.
And if your Adjusted Net Income is above £60,000, there is a sliding scale of HICBC, meaning you'll end up repaying a portion of the benefit. The charge reduces your benefit by 1% for every £200 you earn over £60,000.
Despite the repayment, there can be advantages to continuing to claim Child Benefit. For example, if one parent is working and earning over the threshold, while the other parent stays at home to care for children, claiming Child Benefit can help the parent not working to retain their National Insurance credits, which contribute towards your state pension.
Ultimately, whether you should claim Child Benefit depends on your financial situation and future plans, so it’s important to sit down with your financial planner and consider Child Benefit in the round of your whole financial picture.
Some things that your financial adviser might discuss with you include: do you anticipate a decrease or increase in income; your household cashflow - would Child Benefit be useful to supplement household income; do the tax implications of the HICBC outweigh the benefits of receiving the payments for you and your family; and if it would be appropriate to consider claiming Child Benefit and saving it towards future expenses, like education costs.
How can we help?
We know that financial planning can be the last thing on the to-do list when you’re busy working professionals with children needing packed lunches one minute and running out of nappies the next, all before you work on your presentation for tomorrow’s big meeting, but the earlier you start to make a holistic financial plan for your family, incorporating all of your life goals for you and your children, the better.
It is never too late or too early to find a financial planner that suits you and your family, supporting you through all of life’s changes.
Accession specialises in providing high-quality, face-to-face financial planning for farming and rural families, professionals, and rural businesses across Bedfordshire, Cambridgeshire, Northamptonshire and the surrounding counties.
If you or someone you know would benefit from speaking to one of our advisers about planning for the future, please do contact us on 01832 279170 or accession@sjpp.co.uk to discuss your requirements and get an appointment in the diary.
SJP Approved 16/9/2026