My income dropped — can I restart Child Benefit and avoid the HICBC in 2026/27?

Full answer

The HICBC in 2026/27 applies only when the higher earner in the household has an adjusted net income above £60,000. The charge claws back 1% of the Child Benefit for every £200 of income over £60,000, so it fully cancels the benefit at £80,000. If your income has dropped below £60,000, there is no charge whatsoever and you keep every penny of Child Benefit. If it lands between £60,000 and £80,000, a partial charge applies but it can still be worth claiming because you receive more than the charge takes back. To restart, log into your HMRC online account (or call the Child Benefit helpline) and ask to begin payments again. A restart can be backdated up to three months, so act promptly if your income fell earlier in the year. Child Benefit is currently £26.05 a week for the eldest child and £17.25 for each additional child. Adjusted net income is the key figure, not your salary. It is your total taxable income minus grossed-up pension contributions and Gift Aid donations. So if you are near the threshold, paying more into a pension or via salary sacrifice can pull your income under £60,000 and remove the charge entirely. For example, someone earning £63,000 could contribute £3,000 gross to a pension to bring adjusted net income to £60,000 and escape the charge. The HICBC is a UK-wide tax charge set by HMRC, so the thresholds and mechanism are identical in Scotland, Wales and Northern Ireland — Scottish income tax bands do not change how the charge is calculated. Where the charge does apply, it is collected through Self Assessment or your PAYE tax code.

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