HMRC’s online service to pay the High Income Child Benefit Charge (HICBC) through Pay As You Earn (PAYE) is now live.
The service, announced at the Spring Statement 2025, aims to reduce the need for some taxpayers to complete Self Assessment solely to settle the charge.
The HICBC applies where the claimant or their partner has adjusted net income above the threshold. From the 2024/25 tax year, the threshold is £60,000, with Child Benefit fully withdrawn at £80,000. The clawback rate is 1% of the benefit for every £200 of income over £60,000.
Previously, HICBC payers reported the charge via Self Assessment, with limited coding-out through PAYE for amounts under £2,000. Under the new approach, PAYE taxpayers who only file a return to pay HICBC can opt out of Self Assessment and pay via PAYE instead.
To use the service, individuals must first de-register from Self Assessment; access should then be available the following day.
HMRC plans to write to around 100,000 people who appear liable but are not currently in Self Assessment. In 2022/23, about 440,000 individuals were liable to HICBC. HMRC notes there is a potential risk of two HICBC amounts appearing in one year’s PAYE code where liabilities span 2024/25 and 2025/26, depending on timing.
Households can also opt out of receiving Child Benefit payments if preferred. However, registration can still be beneficial, as it provides National Insurance credits for non-working parents and triggers a child’s NI number before age 16.
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