The High Income Child Benefit Charge can catch families by surprise. We hear a similar story from clients every few months. Someone receives a promotion or a bonus and, some time later, discovers that part of the Child Benefit they have been receiving for years needs to be paid back. The money may have gone on school shoes, swimming lessons, and everyday family costs long ago, and the amount owed can easily run into four figures.
The rules can be confusing because they sit between two systems: a benefit paid through HMRC and a tax charge. In this article, we explain how the charge works, what has changed in recent years and some of the questions our clients ask us most often.
How Does The High Income Child Benefit Charge Work?
The High Income Child Benefit Charge (HICBC) is an income tax charge that applies when someone in a family has a high income and either they or their partner receives Child Benefit. It applies where an individual’s adjusted net income is above £60,000 for the tax year.
The main rules are:
- The charge starts when adjusted net income goes above £60,000.
- It is 1% of the Child Benefit received for every £200 of income above £60,000.
- At £80,000 or more, the whole of the Child Benefit is repaid.
- For 2026/27, Child Benefit is £27.05 a week for the eldest or only child and £17.90 a week for each additional child.
- If you and your partner both have income above the threshold, the partner with the higher adjusted net income pays the charge. It makes no difference which of you receives the Child Benefit.
(A partner means someone you are married to, in a civil partnership with or living with as if you were, unless you are permanently separated.)
- The charge can also apply where someone else receives Child Benefit for a child living with you, if they contribute at least an equal amount towards the child’s upkeep. The child does not have to be your own.
For example:
A family with two children receives £44.95 a week in 2026/27, which is roughly £2,337 over the year. If the higher earner has adjusted net income of £70,000, that is £10,000 over the threshold.
Ten thousand divided by £200 gives 50, so the charge is 50% of the Child Benefit received, or roughly £1,169. At £80,000 or more, the full £2,337 or so would be repaid.
What's Changed, And What Hasn't?
April 2024: The threshold rose from £50,000 to £60,000, and the rate of withdrawal was halved from 1% for every £100 to 1% for every £200. As a result, full withdrawal now happens at £80,000 rather than £60,000.
The household income plan was dropped: The previous government planned to move the charge to household income by April 2026, but the Autumn Budget 2024 confirmed that this would not go ahead. The charge therefore remains based on the individual. A couple who each earn £59,000 keep all of their Child Benefit, while a single earner on £65,000 repays part of it.
Easier reporting: Employees who do not need to complete a Self Assessment tax return for another reason can now choose to pay the charge through their PAYE tax code using HMRC’s online service. This means a Self Assessment return is no longer needed for the Child Benefit charge alone, provided the PAYE conditions are met.
The threshold has stayed put: The £60,000 figure is not linked to earnings, so each pay rise can bring more families into the charge. It is worth checking your position each year, rather than only when your circumstances change. The £60,000 threshold continues to apply for 2026/27.
How Can We Assist?
The High Income Child Benefit Charge applies when adjusted net income is above £60,000, with the full Child Benefit repaid at £80,000. The charge remains based on individual income rather than household income.
Depending on your circumstances, you may be able to pay through your tax code or Self Assessment, and pension contributions or Gift Aid may help reduce the charge.
If you are unsure how the rules apply to you, please get in touch with your usual adviser at Haggards Crowther. We are here to support you.
This newsletter is intended as general guidance and does not replace advice on your individual circumstances.
