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. In such cases, HMRC rules state that some of your Child Benefit payments must be repaid through an extra tax charge.
How the charge is calculated
For people claiming 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. If your individual annual earnings reach £80,000 or more per year, then Child Benefit payments must be repaid to HMRC in full.
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.
HMRC's confirmation and example
Confirming the rule for the new 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.”
Options for claimants and upcoming changes
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.
Earlier this year, HMRC issued a tax warning reminder to households claiming Child Benefit that 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 are due to rise from April, giving claimants an annual cash boost of at least £49.40 in the 2027 to 2028 tax year. Currently, claimants can get £27.05 per week for the first or eldest child, and £17.90 for any additional children, but from April these rates will rise to £28 and £18.55 respectively.
Over a full year, this amounts to £1,456 in Child Benefit payments for the first or eldest child (up from £1,406.60), and £964.60 per year for each additional child (up from £930.80), with no limit as to how many children parents can claim for.
The 2027 to 2028 rates were announced by HMRC following Chancellor Healey’s Budget speech on October 28, where he set out the government’s spending plans for the year ahead.
The Budget 2026 document published by The Treasury also sets out HMRC plans to automatically offset Child Benefit overpayments, in a move aimed at simplifying how the High Income Child Benefit Charge (HICBC) is paid. The Treasury said: “HMRC will automatically offset Child Benefit overpayments against the High Income Child Benefit Charge (HICBC), simplifying administration for affected customers by reducing unnecessary payment and repayment transactions. This will be introduced through legislation in Finance Bill 2026-27 with retrospective effect from HICBC’s introduction in January 2013.”
