HMRC has confirmed that Child Benefit claimants with an individual income of £80,000 or more must repay the entire sum they receive, as part of the tax authority's ongoing enforcement of the High Income Child Benefit Charge (HICBC). The repayment obligation is not optional, and it applies regardless of whether the claimant or their partner originally received the benefit payments.
The charge begins to bite at the £60,000 income threshold. For every £200 of income above that level, recipients must give back 1% of their Child Benefit. By the time income reaches £80,000, the taper has run its course, leaving the family with no benefit to keep. It is the higher earner's individual income that counts, not the combined household income.
What is the High Income Child Benefit Charge?
The High Income Child Benefit Charge is a tax charge introduced to recover Child Benefit payments from families where the highest earner's income exceeds a set limit. HMRC explains that the charge applies if you or your partner receives Child Benefit and at least one of you earns more than the threshold.
In its guidance, HMRC states: “You or your partner may have to pay the High Income Child Benefit Charge if either of you receives Child Benefit and at least one of you earns more than the threshold. This means you will have to pay some or all of your Child Benefit back.”
The charge is not limited to parents or legal guardians. HMRC adds that the charge may also apply if someone else gets Child Benefit for a child living with you and they contribute at least an equal amount towards the child’s upkeep. “It does not matter if the child living with you is not your own child,” the guidance continues.
How much of your Child Benefit must be repaid?
The amount repaid depends on how far income exceeds the £60,000 threshold for the 2024-25 tax year onwards. For earnings between £60,000 and £80,000, the repayment is tapered at a rate of 1% of the total Child Benefit for every £200 of income above the threshold. At £80,000, the taper reaches 100%, meaning the entire benefit is clawed back.
HMRC provides a worked example: if your adjusted net income is £67,600 in tax year 2024 to 2025, this is £7,600 over the threshold. As 7,600 divided by 200 equals 38, you will pay back 38% of your Child Benefit. For instance, if your Child Benefit entitlement is £25.60 a week for the eldest child, that would total £1,331.20 a year, and you would repay £505.86 in this example.
How is the income threshold calculated?
To determine whether you are caught by the charge, you need to calculate your adjusted net income. This is your total taxable income, including savings interest and dividends, calculated before any Personal Allowances and less certain tax reliefs such as pension contributions and Gift Aid. This means that making additional pension contributions or charitable donations could lower your adjusted net income and potentially reduce your repayment amount.
The threshold for earlier tax years was lower. For tax years up to and including 2023-24, the charge applied when individual income exceeded £50,000. From the 2024-25 tax year, the threshold rose to £60,000, and that is the figure now used by HMRC for current claims. The higher threshold provides some relief, but the full clawback at £80,000 remains unchanged.
When and how to pay the tax charge
Anyone affected by the charge must report it to HMRC and pay the tax owed. For the tax year starting on 6 April 2025, the payment deadline falls on 31 January 2027. If you have missed that deadline, you must make the payment through Self Assessment. This is a firm deadline, and interest may be charged on late payments.
However, there is an alternative for those who previously submitted a Self Assessment tax return solely to declare the High Income Child Benefit Charge. HMRC states that in such cases, you can choose to pay the charge through the Pay As You Earn (PAYE) system instead, which deducts the tax directly from your salary. This option simplifies the process for employees who would otherwise need to file a separate return.
What families should do now
Families earning close to or above the £60,000 threshold should check their adjusted net income for the current tax year. If you are already affected, you need to register for Self Assessment if you are not already within the system, unless you qualify for the PAYE option. You should also notify HMRC of your liability as soon as possible to avoid penalties.
Failing to declare the charge can lead to penalties and interest, so HMRC's guidance is clear: the duty to repay rests with the individual, not the benefit office. The tapered nature of the charge means even small excesses over £60,000 trigger a repayment obligation, and the full clawback at £80,000 leaves no benefit in place. Households with fluctuating incomes should monitor their earnings each year, as a change in salary, bonuses, or savings income could push them over the threshold unexpectedly.
