UK households claiming Child Benefit will be required to repay the full amount if their individual annual income reaches £80,000 or more, under HM Revenue and Customs (HMRC) rules. The High Income Child Benefit Charge (HICBC) already applies to those earning £60,000 or more, with repayments starting at 1% for every £200 earned above that threshold. At £80,000, the repayment becomes 100%.
How the Charge Works
The tax charge applies to claimants in the current 2026/27 tax year. Affected households can choose to receive Child Benefit payments and pay the tax charge, or opt out of payments and avoid the charge. If opting to pay, it can be done through the PAYE tax code or Self Assessment.
Confirming the rule, 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.”
Calculating the Repayment
The repayment is calculated at 1% of Child Benefit for every £200 earned over the £60,000 threshold. For example, an adjusted net income of £67,600 in tax year 2024/25 is £7,600 over the threshold, resulting in a 38% repayment of Child Benefit.
If both partners have incomes over the threshold, the one 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, unless permanently separated.
Payment Methods
HMRC advises that the charge must be paid through Self Assessment if a tax return is required for another reason, such as self-employment or savings interest, or if payment is made after January 31 following the tax year. On July 22, HMRC posted on X: "We have made it easier to pay the High Income Child Benefit Charge. Customers in Self Assessment will now have their Child Benefit information pre-populated on their online tax return."
Opting Out
Those who opt out of receiving payments remain registered for Child Benefit. They will not receive payments or pay the tax charge, but will still receive National Insurance credits toward their State Pension and a National Insurance number for their child without applying before the child turns 16.
Payment Rates for 2026/27
Child Benefit payments increased on April 6 for the 2026/27 tax year: £27.05 per week for the first or eldest child, and £17.90 for additional children. This amounts to annual increases of £52 and £33.80 respectively, totaling £1,406.60 per year for the eldest or only child and £930.80 per year for each additional child, with no limit on the number of children claimed for.
