Families who owe the High Income Child Benefit Charge (HICBC) will soon be able to repay it through their monthly salary using PAYE.
This option will be available from summer 2025.
How it will work in practice
If you are employed and eligible, you can ask HM Revenue & Customs (HMRC) to collect the money directly from your pay.
This means you may no longer need to complete a Self-Assessment tax return just for the HICBC.
Those who already file tax returns for other reasons will still need to report the charge that way.
How the HICBC is calculated
The charge applies when one parent earns £60,000 or more.
For every £200 over this limit, one per cent of the Child Benefit received must be paid back. The entire benefit is repaid once earnings reach £80,000.
You may still want to register
Even if you do not receive any actual payments due to the charge, it can still be worth registering for Child Benefit.
You could still receive valuable National Insurance credits and help your child get a National Insurance number when they turn 16.
What to do next
If you want to use the new PAYE option, you will need to sign up online when the service goes live.
HMRC will contact eligible families directly. If you previously opted out of receiving Child Benefit, you can opt back in online or through the app.
Speak to us today if you are unsure how the changes affect you.
