HM Revenue and Customs (HMRC) has confirmed that for the 2026 to 2027 tax year, households claiming Child Benefit with an individual annual income of £60,000 or more will be subject to the High Income Child Benefit Charge (HICBC).
The charge applies if either you or your partner receive Child Benefit and at least one of you earns more than £60,000 per year. Under HMRC rules, some Child Benefit payments must be paid back in these circumstances.
Repayment rates and thresholds
For claimants in the 2026/27 tax year, Child Benefit must be repaid at a rate of 1% for every £200 of earnings above the £60,000 threshold. In cases where individual annual earnings reach £80,000 or more, Child Benefit payments must be repaid to HMRC in full.
If both you and your partner have an adjusted net income over the threshold, the person with the higher income is responsible for paying the tax charge. A partner is defined as someone you are married to, in a civil partnership with, or living with as if you were married, provided you are not permanently separated.
HMRC guidance and examples
Confirming the rule for the new 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.”
Claimants whose income exceeds the threshold can choose to either receive Child Benefit payments and pay the tax charge, or opt out of receiving payments and avoid the charge. Those who opt to pay can do so through their PAYE tax code or Self Assessment.
Pay rise warning and new rates
Earlier this year, HMRC issued a reminder to households claiming Child Benefit who received a pay rise at the start of the new tax year in April, as it could push some claimants into the HICBC band. In a post on X, HMRC said: “Attention parents! Recently had a pay rise? If you’re now earning over £60k and you get Child Benefit you may need to pay some of it back.
“You can use the new High Income Child Benefit Charge service if you don’t already complete Self Assessment. For more information, search “High Income Child Benefit Charge” on GOV.UK or click the link below.”
Child Benefit payments have risen by 3.8% for the 2026/27 tax year, effective from April 6. This adds an extra £1 per week for the first child and an extra 65p per week for each subsequent child. The new weekly rates are £27.05 for the first or eldest child and £17.90 for any additional children, an annual increase of £52 and £33.80 respectively. Over a full year, this amounts to £1,406.60 for the eldest or only child and an additional £930.80 per year for each additional child, with no limit on the number of children parents can claim for.
