Paying the 2025-26 Child Benefit tax charge

Taxpayers who need to pay the High Income Child Benefit Charge (HICBC) for 2025-26 may be able to pay it through PAYE rather than completing a self-assessment tax return solely to report the charge.

The HICBC applies where an individual or their partner receives Child Benefit and the individual’s adjusted net income exceeds £60,000. The amount payable increases with income, reaching the full amount of Child Benefit when adjusted net income reaches £80,000.

The charge can also apply where another person claims Child Benefit for a child living with you and contributes at least an equal amount towards the child’s upkeep, regardless of whether the child is your own.

The charge can be paid through self-assessment or PAYE, depending on the taxpayer’s circumstances. HMRC allows eligible taxpayers to pay through PAYE by adjusting their tax code. Taxpayers can register using HMRC’s online service. Once registered, HMRC will adjust the tax code and notify the taxpayer and their employer or pension provider, where relevant. For the 2025-26 tax year, this must be done before 31 January 2027.

Those who have previously submitted self-assessment returns solely to pay the HICBC can also switch to PAYE. They will need to contact HMRC by telephone to leave self-assessment and register for PAYE payment. 

Anyone who must submit a tax return for another reason, such as self-employment income or taxable investment income, must continue to report and pay the HICBC through self-assessment.

Choosing to pay the HICBC through PAYE can simplify tax reporting for eligible taxpayers, avoiding the need to file a self-assessment tax return solely because of the charge.