Household guide

Should you opt out of Child Benefit or keep claiming?

Use this page when the household already receives Child Benefit and the higher earner may be moving above the current taper band of £60,000.00 to £80,000.00 in tax year 2025-26. The key decision is not just the charge. It is whether the household should keep the claim active, keep the payments, or opt out of payments while protecting National Insurance credits.

Higher earner drives the chargeClaim and payment are not the same choiceNI credits still matter

Open Child Benefit calculator See GOV.UK HICBC guidance

Who this helps

What this decision page is for

This page is for households deciding what to do with an existing Child Benefit claim once the higher earner may be moving into the HICBC taper band.

Why households should separate the charge question from the claiming question

Many households focus only on whether the higher earner is inside the taper. That is too narrow. The better question is whether the household should keep receiving the payment, keep the claim but opt out of payments, or change ANI enough to reduce the charge in the first place.

What this helps you decide

The higher earner is the test earner

The charge follows the higher earner’s adjusted net income, even when the Child Benefit payment goes to the other partner.

Keeping the claim is not the same as taking the cash

Households can keep a Child Benefit claim active while opting out of payments if they do not want the cash flow but still want the claim in place.

National Insurance credits still matter

HMRC notes that keeping the Child Benefit claim active can preserve National Insurance credits that help protect State Pension records.

ANI reducers may be a better answer than opting out

If the household is only slightly above the taper start, pension contributions or salary sacrifice may reduce the charge enough to make keeping the claim worthwhile.

Common questions

Can I keep claiming Child Benefit and still pay the charge?

Yes. A household can keep receiving Child Benefit and then pay any High Income Child Benefit Charge that applies to the higher earner.

Can I opt out of payments and still keep National Insurance credits?

Yes, if the Child Benefit claim stays active. HMRC says you can opt out of receiving payments and still keep National Insurance credits that count towards the State Pension.

Who has to pay the Child Benefit charge?

The charge follows the higher earner in the household, not necessarily the person who receives the Child Benefit payment.

When is it worth using the dedicated Child Benefit calculator?

Use the calculator when you want the actual charge estimate and the ANI reduction needed to lower it, rather than just the general keep-claiming versus opt-out decision.

Related calculators

Use these next for the actual household numbers

Child Benefit tax charge calculator

Use the calculator when you want the current household charge in pounds and the ANI reduction needed to lower it.

Adjusted Net Income calculator

Use this when the decision depends on whether the higher earner is really above the taper start once deductions are included.

Salary sacrifice calculator

Use salary sacrifice when pension through payroll is the likely way to move back under the taper band.

Tax and payslip planner

Move into the broader tax planner when you want the Child Benefit decision carried into a wider liability view.

Save this setup in Seedli

Check the current household charge before deciding on the claim

The dedicated Child Benefit calculator is the cleanest next step once you want the actual charge estimate and the likely reduction needed to improve it.

Open Child Benefit calculator