High-Income Child Benefit Charge Via PAYE

From August 2025, employed taxpayers will no longer be required to complete a Self Assessment tax return (SATR) solely to declare and pay the High-Income Child Benefit Charge (HICBC). (Note: for 24-25 a tax return will still need to be completed)

The HICBC is a tax applied to the higher-earning parent in a household, reclaiming up to 100% of the child benefit received by either parent. For the 2024–25 tax year, the charge is set at 1% of the child benefit for every £200 of adjusted net income between £60,000 and £80,000, phasing in until the entire benefit is clawed back.

Currently, even if the higher earner's income comes entirely from employment under PAYE, they are still required to submit a SATR to report and pay the HICBC. However, under the new rules, this will no longer be necessary in such cases.

Instead, those with income solely from employment will be able to use a new online service to report their family’s child benefit and choose to have the HICBC collected directly through their payslip.

Taxpayers with additional sources of income—such as rental or self-employment income—will still be required to file a Self Assessment tax return.