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From summer 2025, employees can settle the High Income Child Benefit Charge through PAYE instead of Self Assessment. Here's what's changing.
Update - This process launched in October 2025, a few months later than the original summer 2025 timeline. HMRC can now collect the High Income Child Benefit Charge through your PAYE tax code instead of Self Assessment, and if HICBC was your only reason for filing Self Assessment, you can ask HMRC to take you out of Self Assessment altogether. Get in touch and we'll help you check how to use it.
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.
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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