New real time payment service for high income child benefit charge

HMRC’s newly launched online service means that taxpayers can pay a high income child benefit charge (HICBC) in real time. It should reduce the number of individuals who have to register for self assessment only for HICBC.

The charge

The HICBC only applies when an individual – or their partner – receives child benefit and their annual income exceeds £60,000, with the charge removing 1% of the child benefit for every £200 of income over £60,000. Once income reaches £80,000, the charge is 100% so the amount of child benefit is essentially reduced to nil.

Online service

The new service allows employees to pay their HICBC via PAYE, provided they have no other reason to complete a self assessment tax return, such as having property income. Keep in mind:

• The deadline for registering for the online service is 31 January after the tax year for which the HICBC is payable.
• Anyone who has not already submitted their tax return for 2024/25 has the option of settling their HICBC liability via PAYE during the current 2025/26 tax year.
• If a HICBC liability for 2025/26 is also collected, this will mean two HICBC amounts being recovered during 2025/26.

Thereafter, HICBC will just be collected in the tax year it relates to.

If an individual has already registered for self assessment to pay their HICBC, they must deregister from self assessment to use the online service.

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