HMRC has confirmed a £60,000 rule that could impact parents who claim Child Benefit. Parents with incomes between £60,000 and £80,000 may be affected by the High Income Child Benefit Charge. Mums and dads earning less than £80,000 per year can still claim the benefit, but they will have to repay some of it. The charge applies if either parent or partner receiving Child Benefit has a net income exceeding £60,000, following a threshold increase from the 2024-25 tax year.
What HMRC Says
HMRC posted on X: "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."
How the Charge Works
Earners must repay 1% of their Child Benefit for every £200 earned over the £60,000 threshold. For instance, if your adjusted net income is £67,600, this is £7,600 over the threshold—or 38 lots of £200—so you will repay 38% of your Child Benefit. This can be repaid through your paycheck or via a tax self-assessment, or you can opt out of payments entirely.
Expert Explanation
Money Saving Expert, founded by BBC and ITV star Martin Lewis, explains: "The amount of Child Benefit you'll have to pay back is tapered, so the more you earn over £60,000 a year, the more you need to pay back. For every £200 you receive above £60,000, you need to pay back 1% of the maximum amount of Child Benefit you're entitled to. In practice, that means the charge will kick in when one of you earns £60,200 or more. Earning £70,000 a year, for example, means you'll pay back 50%. Once you hit £80,000 a year, the charge you'll pay back is equal to 100% of your entitlement."
