HM Revenue and Customs (HMRC) has reiterated that households with an income of £80,000 or more must repay the full amount of Child Benefit received, while those earning between £60,000 and £80,000 face a partial repayment.
Child Benefit remains one of the UK’s most widely claimed family support payments, with more than 6.9 million families receiving it. Recent figures suggest that many eligible families are still failing to claim the benefit during a child’s first year, potentially missing out on payments they are entitled to receive.
The latest reminder from HMRC comes alongside information about a digital service that allows some parents to pay the High Income Child Benefit Charge through their salary rather than completing a tax return.
How the High Income Child Benefit Charge works
According to HMRC, the High Income Child Benefit Charge (HICBC) applies when either a claimant or their partner has an adjusted net income above £60,000 a year. From the 2024-25 tax year onwards, households begin repaying Child Benefit once income exceeds that threshold. The repayment increases gradually as earnings rise. HMRC states that claimants must repay 1% of their Child Benefit for every £200 earned above £60,000.
The tax authority provided an example of a person with an adjusted net income of £67,600 during the 2024-25 tax year. This income is £7,600 above the threshold. According to HMRC, dividing £7,600 by £200 results in a repayment rate of 38%, meaning 38% of the Child Benefit received would need to be repaid.
The repayment requirement continues to increase until income reaches £80,000. At that point, HMRC says the entire amount of Child Benefit received must be paid back through the charge.
In a message posted on X, formerly Twitter, HMRC told new parents: “Just had a baby? Congratulations!” The department added that parents earning between £60,000 and £80,000 can still claim Child Benefit and use its digital service to pay the charge through their salary, removing the need for a tax return.
Child Benefit Rates and Missed Claims
According to HMRC, Child Benefit payments increased from 6 April. Families now receive £27.05 per week, or £1,406.60 per year, for their eldest or only child.
For each additional child, the payment is £17.90 per week, equivalent to £930.80 annually. There is no limit on the number of children for whom Child Benefit can be claimed. HMRC states that these revised rates represent annual increases of £52 for the eldest or only child and £33.80 for each additional child.
Despite the scale of the scheme, official figures indicate that not all eligible families are claiming the support available to them. According to HMRC, while more than 6.9 million families currently receive Child Benefit payments, only 72% of families made a claim during their baby’s first year.
The department has also highlighted a key restriction affecting late applications. A Child Benefit claim can only be backdated for up to three months from the date HMRC receives the claim. As a result, families who delay applying may lose entitlement to payments covering earlier periods.
The latest guidance serves as a reminder that eligibility to claim Child Benefit remains separate from the requirement to repay some or all of it under the High Income Child Benefit Charge, depending on household income.
