High Income Child Benefit Charge

HMRC is now providing the option to pay High Income Child Benefit Charge (HICBC) through PAYE, by having your tax code adjusted, instead of needing to file a self assessment tax return.

If you are liable to pay HICBC, and there’s no other reason for you to send in a tax return, the new service will probably be the easiest way to do this. Be aware that time limits apply, and you need to act on or before 31 January in the year after the tax year for which you need to pay the charge. So, for example, if you need to pay HICBC for the tax year starting 6 April 2025, and it’s on or before 31 January 2027, you can pay through PAYE.

To start the process off, you need to notify HMRC online that you want to pay through PAYE. Do this via the HMRC app, or by searching ‘Child Benefit tax charge pay charge PAYE’ on gov.uk. This then takes you to your Government Gateway login.

The process is slightly different if you already file self assessment returns, but only do so in order to pay HICBC. Here you contact HMRC by phone, and ask to leave self assessment and then register to pay HICBC through PAYE. Both processes require you to provide specific information listed on the gov.uk page referenced above.

Please note: This blog/news post provides an overview or insight only and therefore, should be viewed as being for guidance only purposes. Legislation does change and your own circumstances may differ from the situation highlighted in this blog. Therefore, before taking any action we recommend you get in touch with us to discuss your own situation.