Updated process for the High Income Child Benefit Charge: What you need to know
HMRC has now launched its new online service allowing people to pay the High Income Child Benefit Charge (HICBC) through Pay As You Earn (PAYE) instead of Self Assessment — a change first announced in the Spring Statement 2025.
The update is designed to help taxpayers who only complete a tax return because of HICBC, removing the admin burden for thousands of families.
✅ Who the charge applies to
HICBC kicks in when either you or your partner has adjusted net income above £60,000.
From 2024/25:
- Charge starts at £60,000
- Fully removes child benefit by £80,000
- The clawback rate: 1% of the benefit for every £200 earned above £60,000
🔄 What’s changed?
Until now, the only way to settle the charge was through Self Assessment — unless the amount was under £2,000 and could be coded out via PAYE.
Under the new system, PAYE taxpayers who don’t need a tax return for anything else can now pay HICBC directly through their tax code.
To use the service, you must:
- De-register from Self Assessment (if that’s the only reason you're filing)
- Wait 24 hours for HMRC systems to update
- Opt in to paying via PAYE
HMRC will be writing to around 100,000 people who appear liable but aren’t currently in Self Assessment, so expect contact if you're affected.
⚠️ One quirk to note: If your charge spans 2024/25 and 2025/26, you could briefly see two HICBC deductions in your tax code. HMRC says this will correct itself over the year.
🧠 Don’t forget: opting out of payment isn’t the same as opting out of claiming
Some parents choose to stop receiving the benefit to avoid the charge — but it can still be worth registering because:
- You receive National Insurance credits if you’re not working
- Your child is automatically issued an NI number before 16
So even if you're not being paid the benefit, the registration still matters.
📌 What to do next
If you:
- File Self Assessment only because of HICBC → you may be able to stop
- Are unsure whether you're affected → now is the time to check your adjusted net income
- Want PAYE to handle the charge → you’ll need to de-register before enrolling
If you’re not sure whether you're caught by the rules — or whether switching to PAYE makes sense — just get in touch and I’ll walk you through it.
Need help reviewing your HICBC position?
✅ Check whether you're liable
✅ Confirm whether PAYE is now suitable
✅ Avoid penalties for missed declarations
