HICBC (High Income Child Benefit Charge)
A tax charge that claws back child benefit from households where the highest earner has adjusted net income between £60,000 and £80,000.
If you or your partner earn above £60,000, you lose 1% of your child benefit for every £200 of income above the threshold. By £80,000 it's fully clawed back. For a family with 2 children, that's up to £2,252/year lost.
Pension contributions (including salary sacrifice) reduce your adjusted net income, which can reduce or eliminate the HICBC. This makes pension contributions extraordinarily tax-efficient for families in the £60-80k band — the effective relief can exceed 50% when you add up income tax saving, NI saving, and HICBC reduction.
A parent earning £65,000 with 2 children loses ~£563/year to HICBC. A £5,000 pension contribution brings income to £60,000, eliminating the charge entirely.
This calculator provides estimates based on 2025/26 tax rates and is not financial advice. Scottish taxpayers are subject to different income tax rates and bands. The calculations assume your salary is your only source of income and do not account for benefits in kind or other taxable income.
For personalised guidance on your pension contributions, speak to an FCA-regulated financial adviser. You can find one via Unbiased or VouchedFor.