One income figure, two family rules
Child Benefit and Tax-Free Childcare are separate rules, but they lean on the same number: your adjusted net income. The catch is that they use it differently — Child Benefit looks at the higher earner from £60,000, while childcare tests each parent against a hard £100,000 line. It is easy to pass one and fail the other without realising.
This page lets you check both at once from a single adjusted net income figure, so you can see the full picture for your household in 2026/27 rather than guessing from salary alone.
The Child Benefit charge starts above £60,000 ANI and is fully clawed back at £80,000 or more, while Tax-Free Childcare uses a separate £100,000 per-parent limit. That means the same income change can affect the same family in two very different ways.
How the Child Benefit and childcare limits interact
Child Benefit and Tax-Free Childcare both hinge on Adjusted Net Income, but they read it differently: Child Benefit looks at the higher earner's ANI from £60,000, while childcare applies a separate £100,000 limit to each parent. One pay change can move both at once, which is why it helps to see them side by side rather than one page at a time.
These pages use ANI differently
Child Benefit uses the higher-income person’s ANI and starts tapering above £60,000. Tax-Free Childcare uses a separate £100,000 per-parent limit. That is why the same family can clear one line and fail another.
Check the family rules as a set, not as isolated pages
If one income change affects several outcomes, a side-by-side view is often more useful than solving one page and stopping there.
Where Child Benefit focuses
- Higher-income person’s ANI: only the higher earner’s figure is tested
- Starts above £60,000: an ANI of £64,000 begins the charge
- Tapers to full clawback by £80,000: at £80,000 you repay all of it
Where childcare focuses
- Per-parent £100,000 ANI test: each parent is checked alone, not combined
- Separate from HICBC: you can pass one rule and fail the other
- Feels more like a cliff edge: £100,001 fails, with no taper to soften it
Worked examples
These examples show why families often need both rules side by side rather than looking at each threshold in isolation.
ANI £62,000, partner below £100,000
Child Benefit charge may have started, childcare test may still be fine. The same family can be affected by one rule but not the other.
One figure, two rules: a single income can create different outcomes across them.
ANI £98,000, partner £101,000
Childcare can fail even where Child Benefit is not the issue. One parent being above £100,000 can knock out Tax-Free Childcare on its own.
Different tests: these rules do not read income the same way.
ANI £102,000 with pension relief available
One income change can improve more than one outcome. A qualifying pension contribution may help both the childcare and Child Benefit picture at the same time.
Where it pays off: this is exactly where a side-by-side view earns its keep.
Salary looks fine, ANI says otherwise
Threshold confusion often comes from using salary. Bonuses, benefits and other income can change one or both outcomes once ANI is calculated properly.
The common thread: ANI usually sits behind the confusion.
What people often miss
These are the most common reasons families think the pages disagree when they are actually applying different rules.
Assuming one threshold decides everything
The £60k, £80k and £100k lines do different jobs. A family can be unaffected on one page and still have a real issue on another.
Forgetting who the income test applies to
HICBC looks at the higher earner’s ANI. Tax-Free Childcare applies a per-parent test. Mixing those up changes the answer.
Use this page as the bridge between the calculators
If you are deciding what action to take, the next step is usually to open the detailed Child Benefit or childcare page for the rule that matters most in your family.
Continue reading
Go deeper into the specific rule that needs the next decision.
Questions people usually ask
Do Child Benefit and Tax-Free Childcare use the same income figure?
Both use adjusted net income, but they apply it differently — Child Benefit looks at the higher earner from £60,000, childcare tests each parent against £100,000.
Can I lose Child Benefit but keep childcare support, or the other way round?
Yes. The thresholds are different, so it is possible to be caught by one rule while the other is fine.
Whose income is tested for each rule?
The Child Benefit charge looks at the higher-income partner’s adjusted net income; the childcare limit tests each parent separately.
Can one pension contribution help with both rules?
It can. Because both use adjusted net income, a single qualifying contribution can reduce the Child Benefit charge and help with the £100,000 childcare limit at once.
Is the childcare limit tapered like the Child Benefit charge?
No. Child Benefit tapers between £60,000 and £80,000, but the £100,000 childcare limit is a hard cut-off with no taper.
Why check both rules together?
Because looking at one rule in isolation can hide a problem with the other. Using one adjusted net income figure for both gives the full household picture.
| Primary source | How PayPrecise uses it | Link |
|---|---|---|
| High Income Child Benefit Charge overview | Current HICBC thresholds and taper. | View source |
| Tax-Free Childcare eligibility | Current per-parent £100,000 ANI test. | View source |
| Adjusted net income guidance | Shared ANI logic used across both sides of the page. | View source |
This page is designed to give you a quick, transparent estimate. It is not personal tax advice, and it does not replace checking your exact HMRC position.