NEW Articles5 Nov 2026
Trading Allowance to increase to £3000 from April 2027
What the increase to the Trading Allowance means in practice.
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Employed taxpayers are no longer required to file a tax return.
From this summer, employed taxpayers who have to pay the high income child benefit charge (HICBC) will no longer need to complete a self assessment tax return. Instead, they can report the charge using HMRC’s new online service.
The HICBC only comes into play when an individual – or their partner – receives child benefit and their annual income exceeds £60,000. This means:
For those with several children, the HICBC can result in a high effective marginal tax rate.
For 2025/26, child benefit of £26.05 a week is paid for a first child, with £17.25 a week paid for each subsequent child.
Employed taxpayers will be able to use HMRC’s new digital service to report the amount of child benefit received. This will give them the option of paying the HICBC through PAYE:
It remains to be seen whether the new online service will alleviate the problems associated with the HICBC. One of the main issues continues to be a lack of awareness, despite the charge being in place for more than ten years. Also, most employed taxpayers are not used to dealing with HMRC.
Government guidance on the HICBC can be found here.
THE AUTHOR
Senior Associate, Personal Tax
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