HM Revenue and Customs (HMRC) has confirmed a £200 tax charge rule for UK households claiming Child Benefit. The tax charge applies to households where one partner has an individual annual income of more than £60,000, with those who exceed this earnings threshold being subject to pay the High Income Child Benefit Charge (HICBC).
How the charge works
Under HMRC rules, which apply to households receiving Child Benefit in the 2026/27 tax year, 1% of Child Benefit payments must be paid back for every £200 earned above £60,000. Previously, the tax charge was set at 1% of Child Benefit payments for every £100 of earnings over £50,000, but from tax years 2024 to 2025 onwards, repayments apply once annual earnings reach £60,000.
These repayments are charged at a rate of 1% of every £200 earned above the £60,000 limit - and for households with even higher earnings of £80,000 per year or more, ALL of the Child Benefit must be paid back to HMRC.
HMRC statement on the rule
Confirming the charge for the 2026/27 tax year, HMRC said: “From tax year 2024 to 2025 onwards, if you or your partner earn more than £60,000 a year, you’ll have to pay some of your Child Benefit back. If you or your partner earn £80,000 or more, you’ll have to pay all of it back.
“You’ll pay back 1% of your Child Benefit for every £200 you earn over the threshold. Example: Your adjusted net income is £67,600 in tax year 2024 to 2025. This is £7,600 over the £60,000 threshold. As 7,600 divided by 200 is 38, you’ll pay back 38% of your Child Benefit.”
Who is affected
If your adjusted net income is over the threshold and so is your partner’s, then whoever has the higher income is responsible for paying the tax charge. ‘Partner’ refers to someone you’re not permanently separated from who you’re married to, in a civil partnership with or living with as if you were.
As the HICBC charge is based on individual income, rather than household income, some Child Benefit claimants can be caught out by the rules and not realise they face a tax charge. The charge can also apply if someone else receives Child Benefit for a child living with you, provided they contribute at least an equal amount towards the child’s upkeep.
If your income exceeds the threshold, you can choose to either get Child Benefit payments and pay the tax charge, or opt out of getting payments and not pay the tax charge. If you do opt to pay the tax charge, this can be done through your PAYE tax code or through Self Assessment.
Explaining the £60,000 individual earnings rule, Gemma Slingo, Pensions & Investment Writer at Fidelity International, said: "Most families can claim child benefit. It amounts to £27.05 a week for your eldest child, and £17.90 a week for any younger children.
"However, if you or your partner earns more than £60,000, the government will start to claw back the money. Specifically, you will pay back 1% of your child benefit for every £200 you earn over £60,000. So, by the time you earn £80,000, you’ll be paying it all back. This is known as the ‘High Income Child Benefit Charge’.
"What matters here is individual income. You and your partner can both earn £59,000 a year and still receive the full benefit. But if one parent earns more than £60,000, the clawback begins."
