HMRC has clarified rules around the High Income Child Benefit Charge (HICBC), which requires some DWP claimants to pay back their Child Benefit if their income exceeds £60,000. The guidance follows a query from a customer who asked about stopping Child Benefit partway through the tax year.
£200 rule explained
Government guidance states: "You'll pay back 1 per cent of your Child Benefit for every £200 you earn over the threshold." This means once income reaches £80,000, the full amount must be repaid.
The customer, posting on social media, said: "My adjusted net income for 2026/2027 will be over £60,000. I was going to stop my Child Benefit at the start of the tax year to avoid the HICBC, but never got around to it. If I stop it now, will l still be charged HICBC for the part year?"
HMRC response
HMRC directed the customer to the gov.uk information page, but the customer said it did not answer their specific question about tax code adjustments after the tax year. HMRC replied: "The charge is up to the date your Child Benefit payments stop. You would need to inform the department directly so they can update the code with the charge end date."
People who must pay the charge can do so through PAYE or self assessment. For PAYE, they can register online, and HMRC will send a new tax code to them and their employer. For pension income, the new code goes to the pension provider.
How much could you pay back?
The repayment amount depends on the level of entitlement. Child Benefit is currently £27.05 a week for the eldest child and £17.90 a week for each additional child. For someone with two children repaying the full entitlement, that would be £44.95 a week, or £2,337.40 a year.
