HMRC's £60,000 rule confirmed for 2026 — do you have to pay back your Child Benefit?

Child Benefit pays £25.60 per week for your eldest child and £16.95 per week for each additional child in 2026/27 — that is £1,331.20 per year for one child, rising to £2,212.60 for two children. But for families where one partner earns over £60,000, some or all of this must be paid back through the tax system.

What is the High Income Child Benefit Charge?

The High Income Child Benefit Charge (HICBC) is a tax charge introduced to claw back Child Benefit from higher-income households. HMRC confirmed in May 2026 that the £60,000 threshold is unchanged for 2026/27.

The charge works as follows:

• If the higher earner in the household earns between £60,000 and £80,000, you repay 1% of your Child Benefit for every £200 earned above £60,000
• If the higher earner earns £80,000 or more, you repay the entire Child Benefit amount

Real examples of the charge in 2026/27

To make this concrete, here is what the charge looks like at different income levels for a family with two children (Child Benefit = £2,212.60/year):

• Income £55,000: Below the threshold — you keep all £2,212.60. No charge.
• Income £65,000: £5,000 above the threshold. 5,000 ÷ 200 = 25%. Charge = 25% × £2,212.60 = £553 to repay. You net keep £1,659.60.
• Income £70,000: £10,000 above threshold. 10,000 ÷ 200 = 50%. Charge = 50% × £2,212.60 = £1,106 to repay.
• Income £80,000+: You repay the entire £2,212.60. The net benefit is zero.

Should you even bother claiming if you earn £80,000+?

Yes — and here is why this is not obvious at first glance. Even if you earn above £80,000 and have to repay everything, there are two very good reasons to still claim Child Benefit:

1. National Insurance credits for the non-working partner: If one partner is not working (e.g., they are on parental leave or a stay-at-home parent), claiming Child Benefit automatically provides National Insurance credits. These NI credits count towards the State Pension. Missing them could reduce your State Pension entitlement permanently.
2. If your income drops: Life can change suddenly — redundancy, reduced hours, career break. If you start claiming later, there is no backdating beyond 3 months.

The accepted approach is to claim Child Benefit, register for Self Assessment, and pay back what you owe through your tax return. The administrative burden is worth it for the NI credits alone.

How does HMRC collect the charge?

The HICBC is collected through Self Assessment. If either you or your partner earns above £60,000, the higher earner must:

1. Register for Self Assessment (if not already registered)
2. Complete a Self Assessment tax return each year
3. Declare the Child Benefit received
4. Pay the charge as part of their Self Assessment bill (due by 31 January following the tax year)

Alternatively, the higher-earning partner can elect to have the charge collected via their PAYE tax code — HMRC will adjust your code to recover the money in monthly instalments through your payslip. This can be convenient but means your take-home pay drops throughout the year.

What counts as 'income' for the HICBC?

The charge is based on adjusted net income, not just your salary. This includes:

• Employment income
• Self-employment profits
• Rental income
• Savings interest (above your Personal Savings Allowance)
• Dividends (if you are a company director)

Crucially, pension contributions and gift aid donations reduce your adjusted net income. If you are earning £65,000 and make £5,000 in pension contributions, your adjusted net income drops to £60,000 and you no longer have to pay the charge at all. Use our salary sacrifice calculator to model this.

What if you stopped claiming Child Benefit?

Many families earning over £80,000 cancelled their Child Benefit years ago to avoid the administrative hassle. With the new two-child limit removal (separate change), it is worth reconsidering — and the NI credits argument is strong regardless of income level for non-working partners.

To restart your Child Benefit claim, log into your Child Benefit online account at gov.uk or call the Child Benefit helpline on 0300 200 3100.

Frequently Asked Questions

The charge is based on the higher earner — what if I earn £55k and my partner earns £65k?

The charge applies based on the individual income of the higher earner — it is not a combined household income test. In your example, your partner earns £65,000, so the HICBC applies based on their income only. They must register for Self Assessment and pay the charge, even if the Child Benefit is paid to you.

We are not married — does the charge still apply?

Yes. The HICBC applies to any two people who are "living together as if married or civil partners." You do not need to be legally married. If you are in a long-term cohabiting relationship, the income of the higher earner is what matters for the charge.

My income went over £60,000 mid-year due to a bonus — do I still pay the full charge?

The charge is based on your annual income for the whole tax year. If a bonus pushed you above £60,000 in one year but your base salary is normally below, you would still owe the charge for that year. Use your Self Assessment return to declare the charge. The following year, if your income is below £60,000 again, you will not owe anything.

Can I use salary sacrifice to get below £60,000?

Yes, and this is one of the most common legal strategies to avoid or reduce the HICBC. If your employer offers salary sacrifice for pension contributions, and sacrificing takes your adjusted net income below £60,000, you avoid the charge entirely. A sacrifice that saves the full Child Benefit amount can be worth thousands of pounds a year.

I forgot to register for Self Assessment and missed paying the charge — what now?

Contact HMRC as soon as possible. Penalties for late Self Assessment registration and late payment apply, but HMRC is generally willing to waive or reduce penalties if you come forward proactively. Ignoring it makes the situation significantly worse — HMRC has access to Child Benefit payment data and cross-references it against tax records.