State Benefits

Child benefit and tax charge

Child benefit
2022/23
2023/24
2024/25
2025/26
Rate of child benefit (per week)
Eldest/only child
£21.80
£24.00
£25.60
£26.05
Other children
£14.45
£15.90
£16.95
£17.25
Guardian’s allowance
£18.55
£20.40
£21.75
£22.10
  • Since 7 January 2013 there is an income tax charge where “household” income is over £50,000.*
  • The charge is 1% of the child benefit for every £100 income over £50,000.
  • The maximum charge will be reached on income over £60,000 when it will be equal to the amount of child benefit received.
  • Child benefit will continue to be paid without tax deduction at the point of payment.
  • No tax charge will be made for annual income above £60,000 (child benefit should have been fully reduced at this point).
  • The person liable to pay the tax in the case of a single parent family is the parent.
  • Where two people are living together as a couple, whether or not they are married or civil partners, the tax charge is payable by the person with the greatest net adjusted income.
  • Where person “A” or their partner is claiming child benefit, but is not liable to the tax charge, and the child lives with someone else, “B”, and B or their partner has income exceeding £50,000, the tax charge is made on either B or their partner depending on who has the greatest income.
  • Persons liable to the charge who are subject to PAYE will have their tax code adjusted so that the child benefit tax is collected from their salary or wages.
  • Self-employed individuals, partners in a business and others who pay all their tax through self-assessment will pay the charge as part of their instalment payments due on 31 January and 31 July each year.
  • Spring Budget 2024. From 2024 the withdrawal threshold will be increased to £60,000, and the rate of charge will be lower, at 1% for every £200 of excess income. This means that full withdrawal won’t occur until adjusted net income is at £80,000.
  • Note. Net adjusted income is your total income, which is subject to income tax, less deductions that reduce the amount on which tax is payable; usually these will be tax allowable expenses, pension contributions, gift aid payments and losses from trade.