HMRC has an online service allowing taxpayers to pay the High Income Child Benefit Charge (HICBC) directly through Pay As You Earn (PAYE). Announced in the 2025 Spring Statement, the update aims to simplify repayments for families who previously had to complete a Self Assessment return solely to settle their HICBC.
If your household receives Child Benefit and either you or your partner has an adjusted net income (ANI) above the threshold, the higher earner may need to repay some or all of the Child Benefit through HICBC.
What is the High Income Child Benefit Charge (HICBC)?
The HICBC is a tax charge applied to households where the higher earner’s income exceeds a set threshold. The amount repaid increases gradually, with Child Benefit fully withdrawn once the upper limit is reached.
Since April 2024, households with a higher earner making over £60,000 will see 1% of Child Benefit repaid for every £200 above this threshold.
How to pay HICBC via PAYE
Previously, individuals liable for HICBC had to register for Self Assessment and declare their liability via a tax return. Small amounts owed to HMRC (under £3,000) could then be collected through a PAYE coding notice, once the Self Assessment tax return had been prepared.
The HICBC PAYE service, launched in September 2025, allows employees to pay the charge through their PAYE code without completing Self Assessment, provided they have no other reporting obligations (i.e. they are not required to complete a Self Assessment tax return for another reason).
Deadline to register for this service
- 31 January after the end of the tax year.
What information do you need to use the HICBC PAYE service?
Before registering, taxpayers should ensure they have:
- Deregistered from Self Assessment as HMRC will not do this automatically;
- National Insurance number of the partner receiving Child Benefit (if applicable);
- Dates of any relationship changes during the tax year; and
- Proof of identity (passport or driving licence) to access the service.
After confirming the details, the HICBC payments should be collected via the PAYE coding notice. PAYE codes are usually updated within 48 hours.
Opting out of Child Benefit
Households can opt out of receiving Child Benefit, for example if their income exceeds £80,000 and the benefit would be fully repaid. Claimants can do this online, by form, or by contacting the Child Benefit Office.
Even if opting out, registration for Child Benefit is recommended because:
- Non-working parents who are registered for Child Benefit continue to receive National Insurance credits toward their State Pension for a period.
- The child automatically receives a National Insurance number before turning 16.
- This keeps the claimant registered within the Child Benefit system, meaning that if household income later falls below the HICBC threshold, Child Benefit payments may potentially be backdated for up to the previous two tax years rather than the standard three-month limit.
Need help with HICBC?
If you have any queries regarding how Child Benefit repayments work, please get in touch with your usual contact at M+A Partners.
