The High Income Child Benefit Charge (HICBC)

HM Revenue & Customs (HMRC) has introduced a new service to simplify how taxpayers pay the HICBC.

The HICBC applies to households receiving Child Benefit where one person has adjusted net income of more than £60,000. HICBC is charged on the higher earner, even if they don’t claim the benefit or have parental responsibility. The rate charged is 1% of Child Benefit for every £200 over the £60,000 threshold.

Prior to April 2024, the threshold was £50,000, with a rate of 1% per £100 over that amount.
Since it was introduced, the HICBC has been payable through the self-assessment system, with individuals who need to pay the charge having to register for self-assessment & submit a tax return each year.

What’s Changed?

  • Taxpayers no longer need to register for self-assessment just to pay the HICBC.
  • Instead, they can use the new service to pay via PAYE, provided they register by 31 January after the tax year ends.
  • Those previously registered for self-assessment must deregister first to use the new service.

Transition Period

  • If the 2024/25 tax return hasn’t been submitted, individuals can opt to pay both 2024/25 and 2025/26 HICBC via PAYE in the 2025/26 tax year if they wish.
  • From 2026/27 onwards, HICBC will be collected in the year it relates to.

How It Works

  • Once registered, a new PAYE coding notice is typically issued within 48 hours.
  • We are told that future changes to Child Benefit such as the birth of a new child or a child turning 16 will be automatically updated.
  • Changes like a new partner must be manually reported to HMRC