The High Income Child Benefit Charge (HICBC) claws back child benefit if the recipient and/or their partner earns more than the threshold. For 2026/27, the charge applies once adjusted net income exceeds £60,000. Where both the recipient and their partner have adjusted net income of more than £60,000, the charge is levied on the one with the highest income. The person liable to pay the charge may not be the person who received the child benefit.

The charge claws back 1% of the child benefit for the tax year for every £200 by which adjusted net income exceeds £60,000. Once adjusted net income reaches £80,000, the HICBC is equal to the child benefit for the year. For 2026/27, child benefit is set at £27.05 per week for the eldest child and £17.90 per week for each additional child.

Opting not to receive the benefit

Where the HICBC will claw back all the child benefit for the tax year (which will be the case where adjusted net income is £80,000 or more), it may be preferable not to receive the child benefit rather than receiving it and paying it back. A person can opt out of receiving child benefit either by using the online service or completing the online form.

It is important to claim child benefit then opt out (rather than simply not claiming it) to benefit from the associated National Insurance credits, particularly where the claimant would not otherwise secure a qualifying year for state pension purposes.

Paying the charge through Self-Assessment

It used to be the case where a taxpayer needed to pay the HICBC, they had to register for Self-Assessment if not already registered and pay the charge through the Self-Assessment system. However, with the introduction of the PAYE service, the charge is now only payable through Self-Assessment where the person needs to send in a Self-Assessment tax return for another reason (as will be the case, for example, if they have trading, property or investment income) or if they have not paid the charge by 31 January after the end of the tax year to which it relates.

Paying the charge through PAYE

A new service was launched last year which allows taxpayers to pay the HICBC through PAYE, removing the need to register for Self-Assessment solely to pay the HICBC. The taxpayer’s tax code will be adjusted to collect the HICBC through PAYE. Taxpayers must register to use this service.

However, the charge can only be paid through PAYE if all the following apply:

• the taxpayer does not need to file a Self-Assessment return for another reason;
• they are paying the tax for the current or previous tax year onwards; and
• it is before 31 January after the end of the tax year to which the charge relates.

A person who previously paid the charge through Self-Assessment can switch to paying through PAYE by contacting HMRC to be removed from Self-Assessment and to register to pay the charge through PAYE. If a person needs to be within Self-Assessment for another reason, the charge must be paid through Self-Assessment – it cannot be paid through PAYE.