HMRC has launched a new online service that lets taxpayers pay the High Income Child Benefit Charge (HICBC) in real time. The HICBC is often called the Child Benefit tax charge.
HMRC’s aim is to cut the number of people who register for Self Assessment only because of HICBC. This should make things simpler for families affected by the charge.
The charge
The HICBC applies when both of the following are true:
- You or your partner receives Child Benefit, and
- Your annual income is more than £60,000.
From that point:
- The charge removes 1% of the Child Benefit for every £200 of income over £60,000.
- Once income reaches £80,000, the charge is 100%. At that stage, the value of the Child Benefit is effectively reduced to nil.
So, the higher your income between £60,000 and £80,000, the more of your Child Benefit you repay through the charge. It is therefore important to understand how and when the Child Benefit tax charge will be collected.
How the new online service works
The new service lets employees pay their HICBC through PAYE. You can use it only if you have no other reason to complete a Self Assessment tax return, for example property income or other complexities.
Keep these key points in mind:
- Registration deadline
You must register for the online service by 31 January after the end of the tax year for which the HICBC is payable. - Using PAYE for 2024/25
If you have not yet submitted your tax return for 2024/25, you can choose to settle your HICBC liability via PAYE during the current 2025/26 tax year. - Two charges in one year
If HMRC also collects your HICBC liability for 2025/26 through PAYE, you will see two HICBC amounts recovered during 2025/26. - Going forward
After this catch-up period, HMRC will collect HICBC in the tax year it relates to. The timing should then feel more in step with when the income arises. - Already in Self Assessment?
If you have already registered for Self Assessment to pay your HICBC, you must deregister from Self Assessment before you can use the new online service.
This online option should reduce the administrative burden for many employees who currently complete a tax return only because of HICBC.
Signing up
As part of the sign-up process, you may need to prove your identity using photo identification, such as a passport or driving licence.
In many straightforward cases, you will only need:
- Details of your income
- Your National Insurance (NI) number
- Your partner’s NI number, if they receive Child Benefit
More complicated situations need extra information. HMRC may ask for the dates of any relationship changes during the tax year. This helps HMRC match the charge to the right person and period.
Once you sign up, you should receive a confirmation email. Your PAYE coding notice should then update within around 48 hours so your employer can start to collect the charge through your payslip. For individuals who want to pay their HICBC through PAYE, the starting point for signing up can be found here.