HM Revenue and Customs (HMRC) has confirmed that for the 2026/27 tax year, households claiming Child Benefit with annual earnings of £60,000 or more will face an extra tax charge known as the High Income Child Benefit Charge (HICBC). This rule requires affected households to repay some or all of their Child Benefit payments.
How the High Income Child Benefit Charge Works
The HICBC applies if either you or your partner receive Child Benefit and at least one of you earns more than £60,000 per year. For 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 earnings reach £80,000 or more, Child Benefit payments must be repaid in full.
If both you and your partner have adjusted net income over the threshold, the person with the higher income is responsible for paying the charge. A partner is defined as someone you are married to, in a civil partnership with, or living with as if married, provided you are not permanently separated.
HMRC's Official Statement
Confirming the rule for the new 2026/27 tax year, HMRC stated: “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.”
Options for Claimants
If your income exceeds the threshold, you can choose to either continue receiving Child Benefit payments and pay the tax charge, or opt out of receiving payments and avoid the charge. If you opt to pay, the charge can be settled through your PAYE tax code or via Self Assessment.
Earlier this year, HMRC issued a tax warning reminder to households claiming Child Benefit who received a pay rise at the start of the new tax year in April, as this 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.”
Child Benefit Payment Increases for 2026/27
Child Benefit claimants have seen a boost to payments for the 2026/27 tax year, with rates rising by 3.8% on 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 now £27.05 for the first or eldest child, and £17.90 for any additional children. Over a full year, this amounts to £1,406.60 for the eldest or only child, and an additional £930.80 for each additional child, with no limit on the number of children parents can claim for.
