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Tax & Investing
See exactly how much Child Benefit HICBC costs you at Scottish tax rates \u2014 and the pension contribution that restores it.
The Scottish HICBC trap:Between £60,000 and £80,000 the High Income Child Benefit Charge claws back Child Benefit. In Scotland, the 42% Higher rate + 2% NI + HICBC taper can push your effective marginal rate above 70%. Pension contributions are the main escape route.
Enter your salary, number of children, and click Calculate.
HICBC claws back Child Benefit if the higher earner in your household has “adjusted net income” above £60,000. It tapers fully to zero by £80,000. The charge is paid by the higher earner through Self Assessment, even though the benefit is usually paid to the other parent.
| Scotland | England | |
|---|---|---|
| Base rate in HICBC band (£60k–£80k) | 42% Higher | 40% Higher |
| Employee NI | 2% | 2% |
| HICBC taper (2 children) | ~11.25% | ~11.25% |
| Effective marginal (2 children) | ~55.25% | ~53.25% |
| Effective marginal (4 children) | ~64% | ~62% |
Scotland's 42% Higher-rate tax kicks in at £43,663 — below the £60k HICBC threshold — so every pound in the taper zone is taxed at the Higher rate, not Basic.
Child Benefit of £2,251 per year for two children is fully clawed back at £80,000. A pension contribution of £20,000 for someone earning £80,000 cuts adjusted income to £60,000, restoring the full benefit and saving around £8,400 in income tax plus £400 NI. The effective return on that contribution in Scotland is often 150–250%.
Even if you expect to pay 100% of the benefit back through HICBC, always claim it. Claiming preserves National Insurance credits for the claimant parent — which protects their state pension entitlement if they're not working or working part-time. Opting out saves no tax but costs future pension.
See your exact HICBC position. Enter your salary, existing pension, and number of children above to calculate your claw-back and the pension sacrifice that restores the benefit.
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This calculator provides estimates only and does not constitute financial or tax advice. Always verify with Revenue Scotland, HMRC, or mygov.scot, and speak to a qualified financial adviser for advice specific to your circumstances.