HM Revenue and Customs has confirmed that households claiming Child Benefit in the 2026/27 tax year face a tax charge based on earnings above £60,000. Under the High Income Child Benefit Charge, 1% of Child Benefit payments must be repaid for every £200 earned above the threshold.
The rule marks a change from earlier years, when repayments were calculated at 1% for every £100 earned over £50,000. From the 2024/25 tax year onwards, the earnings threshold moved to £60,000, and this remains in place for 2026/27.
How the child benefit charge works
Confirming the charge for 2026/27, 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."
HMRC added: "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."
For households where one partner earns £80,000 or more a year, the full amount of Child Benefit must be paid back.
Who is affected by the High Income Child Benefit Charge
The charge applies where one partner has an annual income above £60,000. If both partners exceed the threshold, the partner with the higher income is responsible for paying the charge. For these purposes, a partner is someone you are married to, in a civil partnership with, or living with as if you were married, as long as you are not permanently separated.
Because the HICBC is based on individual income rather than household income, some claimants may not realise they are affected. 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.
What to do if you are affected
Claimants whose income exceeds the threshold can either continue receiving Child Benefit and pay the charge, or opt out of receiving payments and avoid the charge. Those who choose to pay the charge can do so through their PAYE tax code or through Self Assessment.
Andy Wood, tax expert at Tax Barrister UK, warned: "The key figure parents need to understand is adjusted net income. This is not always the same as salary, as it can include things like savings interest, dividends and other taxable income. Pension contributions and Gift Aid donations can reduce adjusted net income, so families should check the full calculation before assuming they are over the limit. A lot of people assume Child Benefit should simply be cancelled once they cross the threshold, but that is not always the best option. In some cases, continuing to claim Child Benefit while repaying the charge can still protect National Insurance credits and entitlement to the State Pension."
