HMRC has issued a warning to parents claiming Child Benefit who have recently received a pay rise. The High Income Child Benefit Charge applies if either the claimant or a partner they live with receives Child Benefit and at least one of them earns more than £60,000 per year.
Key Details of the High Income Child Benefit Charge
HMRC highlighted the rule in a post on X, stating: "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." In such cases, HMRC recovers the money via a tax return.
The charge applies to the person in the relationship earning over the threshold, which is currently £60,000. It may also apply if someone else who does not live with you—such as an ex-partner or grandparent—receives Child Benefit for a child living with you and contributes at least an equal amount towards the child's care costs.
How the Threshold Works
If the guardian living with the child exceeds the threshold, they must repay the Child Benefit the other party receives. This applies even if the child living with you is not your own. The threshold is over £60,000 for tax years starting from 2024 to 2025, and over £50,000 for tax years up to and including 2023 to 2024.
You will need to pay back 1% of your Child Benefit for every £200 you earn above the £60,000 threshold. For example, if your adjusted net income is £67,600 in the 2024 to 2025 tax year, you are £7,600 over the threshold. Dividing £7,600 by 200 gives 38, meaning the government will recover 38% of your Child Benefit.
Parents are advised to check their income and use HMRC's online service if they do not already file a Self Assessment tax return.
