HMRC has just launched a new online service that enables employees to pay the High Income Child Benefit Charge (HICBC) through PAYE.  

Initially announced as part of the Spring Statement in March this year, the new service has just been launched and is now available for eligible high earners to choose to pay HICBC through PAYE, instead of completing a Self Assessment tax return. 

Here are a few key points in summary: 

HICBC: 

• Is a tax charge that claws back Child Benefit if your Adjusted Net Income is between £60,000 and £80,000 

•  If both partners earn over the threshold, the higher earner pays 

•  The claw back charge of Child Benefit is 1% of every £200 above £60,000 

Who can use the new service? 

•  Employees with HICBC liability 

•  Individuals who would otherwise only need to file a return to report the HICBC 

How to opt in: 

•   Use HMRC’s new online form 

•  Deadline: 31 January following the tax year (e.g. for 2024–25, the deadline is 31 Jan 2026) 

•  If you’re already in Self Assessment, you must deregister by calling HMRC, you can then use the online service the following day 

If you have any questions about HICBC or any other tax related issue, please do get in touch with us.