Taxpayers can use HMRC’s new online service to register for the high income child benefit charge to be collected automatically from their payslip.
Since the high income child benefit charge (HICBC) was introduced, taxpayers have had to choose between opting out of child benefit payments or registering for self assessment to pay the charge.
In some cases, where the total amount due was less than £2,000 HMRC could collect the HICBC through a later PAYE tax code, but there was no way to pay the charge in real time.
A new service launched in September allows employees to pay the HICBC directly through their PAYE tax code without completing a self assessment tax return, provided they have no other reason to file one. Taxpayers with income from other sources such as property or self-employment income will still be required to file a self assessment tax return and will not be able to use the new HICBC service.
Individuals have until 31 January after the end of the tax year to notify HMRC via the new online service that they wish to settle the HICBC through PAYE. If you previously filed self assessment returns you must deregister before joining the new service. If you have not yet filed your 2024-25 tax return, you can use the new service to settle both your 2024-25 and 2025-26 HICBC through your PAYE code in 2025-26. From 2026-27 onwards the HICBC will revert to being collected in the tax year to which it relates.
When you register, HMRC will check that you have deregistered from self assessment and ask questions to confirm whether you or your partner has the higher adjusted net income. Where your partner receives child benefit, HMRC will use their national insurance number to verify the exact amount of child benefit payments made to them.
After confirming the details, your PAYE code should be updated within 48 hours. Future changes to your child benefit entitlement, such as a new child or a child turning 16, will normally update automatically. However any change of circumstances such as a new partner must still be reported to HMRC.
If you have income above £60,000 and you or your partner receive child benefit payments, we can help you determine whether you need to pay the HICBC and how best to settle your liability.
