Child Benefit 2026/27 – Rates, High Income Child Benefit Charge and Tax Explained

If you receive Child Benefit, or you're thinking about making a claim, it's important to understand how the rules work.

Many parents are surprised to learn they may still benefit from claiming Child Benefit even if they earn over £60,000. Understanding the High Income Child Benefit Charge (HICBC) can help you avoid unexpected tax bills and make informed decisions about your family's finances.

At Hiclass Accounting, we help families and business owners understand how Child Benefit fits into their overall tax position, making sure they claim everything they're entitled to while avoiding unnecessary tax.

Child Benefit Rates for 2026/27

From 6 April 2026, Child Benefit has increased to:

Eldest or only child

£27.05 per week
£1,406.60 per year

Each additional child

£17.90 per week
£930.80 per year

What is the High Income Child Benefit Charge?

The High Income Child Benefit Charge (HICBC) is a tax charge that applies when either you or your partner has an adjusted net income of more than £60,000.

The important point is that the charge is based on the highest earner's income, not your combined household income.

For 2026/27:

If your adjusted net income is £60,000 or less, there is no charge.
If your income is between £60,000 and £80,000, you'll repay 1% of your Child Benefit for every £200 your income exceeds £60,000.
If your income is £80,000 or more, you'll repay all of the Child Benefit received.

What is Adjusted Net Income?

Adjusted net income isn't simply your salary.

It can include:

Employment income
Self-employed profits
Rental income
Dividend income
Pension income
Taxable benefits

Your adjusted net income may be reduced by:

Personal pension contributions
Gift Aid donations
Certain trading losses

This means careful tax planning can sometimes reduce or even eliminate the High Income Child Benefit Charge.

Should You Still Claim Child Benefit?

In many cases, yes.

Even if you expect to repay some or all of the benefit through the High Income Child Benefit Charge, making a claim can still be worthwhile because it:

Protects your National Insurance credits.
Helps build your entitlement to the State Pension.
Ensures your child automatically receives a National Insurance number before they turn 16.

If you don't want to receive the payments, you can choose to claim Child Benefit but opt out of receiving the money, allowing you to keep these important benefits without receiving payments that may later need to be repaid.

Paying the High Income Child Benefit Charge

If you're liable for the charge, you'll usually need to complete a Self Assessment tax return unless HMRC has arranged to collect the charge through your tax code.

If you're unsure whether the charge applies, it's always worth checking before the end of the tax year to avoid any unexpected tax bills.

Use HMRC's Child Benefit Calculator

HMRC provides a free online calculator to help you estimate:

How much Child Benefit you can receive.
Whether the High Income Child Benefit Charge applies.
How much tax you may need to pay.

Need Help?

The Child Benefit rules can be confusing, particularly if your income changes during the year or you receive dividends, rental income or bonuses.

At Hiclass Accounting, we help clients across the UK understand their tax position, calculate any High Income Child Benefit Charge and identify legitimate ways to reduce their tax bill through careful planning.

If you'd like straightforward advice tailored to your circumstances, we'd love to help.

Book your free consultation today and let us make sure you're claiming everything you're entitled to without paying more tax than necessary.