HMRC has issued a warning to high earners about the High Income Child Benefit Charge (HICBC), which applies if either you or your partner earns more than £60,000. Under the charge, you must repay 1% of the benefit for every £200 over the threshold, and if your income reaches £80,000 or more, you repay all Child Benefit received. The tax authority urged parents to check their eligibility, particularly those earning less than £80,000 a year, as many may be unaware of the charge or their options.
Child Benefit rates have been uplifted by 3.8% for the 2026/27 tax year, according to HMRC. As of April 6, the weekly rate is £27.05 for the first child and £17.90 for additional children.
Tax-Free Childcare provides up to £500 every three months per child under 11, up to £2,000 per year, and up to £1,000 every three months for disabled children, up to £4,000 annually. Martin Lewis said the application process takes roughly 30 minutes and around 800,000 parents are missing out. HMRC issued a reminder on X on April 5, explaining that for every £8 deposited, the government adds a £2 top-up.
Parents with teenagers aged 16-19 in full-time education or approved training can continue receiving Child Benefit until the child turns 20, but must notify HMRC or payments stop automatically when the child turns 16. Child Benefit also provides National Insurance credits and a National Insurance number for the child, which can help protect the parent's state pension entitlement and ensure the child has a NI number for future employment.
If you or your partner earns more than £60,000, you have two options: continue claiming Child Benefit and pay the tax charge via PAYE or Self Assessment, or opt out of payments but keep the National Insurance credits. Opting out means you won't receive the cash but will still build up NI credits, which can be valuable for those not working or earning below the threshold.
HMRC confirmed early Child Benefit payments in May due to bank holidays: payments due on May 4 will be paid on May 1, and those due on May 25 will be paid on May 24. This adjustment ensures families receive their money before the bank holiday weekends.
Child Benefit can be backdated for up to three months, according to multiple reports. This means parents who have recently become eligible or who missed claiming can still receive payments for the previous three months, provided they apply promptly.
Tax-Free Childcare is a UK-wide scheme covering England, Scotland, Wales, and Northern Ireland, according to research. The scheme is open to all parents of children under 12 (or under 17 if disabled). To apply, you must open a Tax-Free Childcare account online. To be eligible, you must be working (and if you have a partner they must work too), and you must not be receiving any support through Universal Credit. Usually both parents in a couple must work on an employed or self-employed basis and have an income of at least £2,643 (2026/27) each every three months. The household must have one child under the age of 12, or a child with a disability under the age of 17. The scheme runs according to the school year, so disabled children are eligible until the September after their 16th birthday, while other children are eligible until the September after their 11th birthday.
Special rules apply for self-employed parents, those on leave, and those with new children. Recently self-employed people are allowed start-up periods where the minimum income level does not have to be met, or they can use an average over the tax year. Periods on maternity leave, sick leave, paternity leave, parental leave, adoption leave, and shared parental leave count as being in work for any older children already enrolled in the scheme. However, eligibility is limited to the last 31 days of leave where parents are claiming for a new child whose birth or adoption led to the time off. If you are due to start work or return to work, you do not have to wait until you start work to apply for Tax-Free Childcare.
Parents pay money into a childcare account, which the government tops up by 25%. For every £8 you put into the account, the government adds £2, which you can use to pay your childcare provider. Most parents who are eligible for Universal Credit can save more money using the childcare elements of that benefit instead of Tax-Free Childcare, according to research. Therefore, parents should compare both options to determine which provides greater financial support.