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April 22, 2025
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Payroll
Coming into effect in summer 2025 is a change to the High-Income Child Benefit Charge (HICBC). Employees can soon opt to pay through PAYE without the need to file a self-assessment and make a lump sum repayment, instead reporting through HMRC’s new digital service.
Claiming child benefit and being a high earner (over £60,000for 2024/25) has been a hassle for many parents since it was first introduced in 2013.
Just as the sun is starting to shine, good news was announced in the spring statement on 26th March 2025. Coming into effect summer 2025, The High-Income Child Benefit Charge (HICBC) rules are changing. Employees can soon opt to pay through PAYE without the need to file a self-assessment and making a lump sum repayment – instead reporting throughHMRC’s new digital service.
This means the repayment will be taken out of payslips via a tax code adjustment, removing the stress and simplifying the process.
Once the effective date and process is announced, we will inform you on how to report your HICBC under the new rules. In the meantime, read our post on why you should still claim child benefit as a high earner
If you are currently affected by the HICBC and need advice, please get in touch with the Folio team.
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