A new way to pay the high income child benefit charge
We have updated our guidance on the high income child benefit charge (HICBC) to explain HMRC’s new provisions for paying the charge via pay as you earn (PAYE). This might mean that you no longer need to file a tax return.
If you or your partner receives child benefit and one of you has income over £60,000, the higher earner may need to pay the HICBC. Until September 2025 the only way to do this was through filing a self assessment tax return. From October 2025 HMRC have introduced a new way to pay the HICBC through the PAYE system. This means that HMRC adjust your PAYE code, and you pay the charge through a deduction from your salary or pension income.
If the only reason you file a tax return is to pay the HICBC you can now call HMRC to ask to be removed from the self assessment system and to request your tax code to be updated to collect the HICBC. However, if you need to file a tax return for any other reason, for example, to report income from self-employment or property, you will need to continue to file a tax return and pay the HICBC via self assessment.
We have expanded the guidance on our high income child benefit charge website page to include details of the new payment provisions.
