A new HMRC service has been introduced to make it easier to pay the High Income Child Benefit Charge. Eligible employees can now pay the charge directly through their PAYE tax code, without needing to complete a Self Assessment tax return.
Previously, taxpayers had to either opt out of receiving child benefit or register for Self Assessment to pay the higher charge. While HMRC could sometimes collect smaller amounts (under £2,000) through a PAYE code used later, there was no option to pay the charge in real time. The new service changes that.
Who is the new service aimed at?
This new service is generally useful if you have no other reason to file a Self Assessment tax return. If you receive income from sources such as property or self-employment, you’ll still need to file a return and won’t be able to use this option.
It’s important to register for the service by 31 January following the end of the relevant tax year. If you’ve previously completed a Self Assessment return, you’ll need to deregister before signing up. If you haven’t yet filed your 2024–25 tax return, you can use the service to pay both your 2024–25 and 2025–26 child benefit through your PAYE code during 2025–26. From 2026–27 onwards, the charge will again be collected in the tax year it relates to.
When you register, HMRC will check that you’re no longer in Self Assessment and confirm whether you or your partner has the higher adjusted net income. If your partner receives the child benefit, HMRC will use their National Insurance number to confirm the amount paid. Once everything is verified, your PAYE code should be updated within 48 hours.
Most routine changes to child benefit, such as adding a new child or a child turning 16, should update automatically. However, changes in personal circumstances (for example if you have a new partner) must still be reported to HMRC.
If your income is between £60,000 and £80,000 and you or your partner receive child benefit, we can help you work out whether the High Income Child Benefit Charge applies and the most efficient way to pay it. Contact our friendly team to discuss your situation and options.