Thousands of households receiving Child Benefit can now settle the high income tax charge via their tax code for the first time. Child Benefit amounts to £26.05 weekly for the first child and £17.25 for each additional child. Eligibility for Child Benefit is based on caring for a child, but high-income individuals may need to repay a portion of this benefit.
If either partner earns above £60,000, a 1% repayment of Child Benefit is required for every additional £200 earned over the threshold. This repayment scheme is known as the High Income Child Benefit Charge. Once earnings exceed £80,000, the entire Child Benefit must be repaid. Previously, the high income charge was settled through self-assessment, but now, there is an option to pay it through the PAYE tax code.
To receive the latest HMRC alerts and advice, The Mirror has introduced a dedicated Money WhatsApp community for subscribers to stay informed. By opting into this service, HMRC will adjust your tax code, and the charge will be deducted from your salary. The deadline to opt in for the 2024/25 tax year is January 31, 2026, after the tax year ended on April 5, 2025. If you regularly file self-assessment, the PAYE option is not available.
For households with high incomes, claiming Child Benefit without receiving payments ensures continued National Insurance credits towards the state pension without incurring the charge. Child Benefit is accessible to over seven million families caring for children under 16 or those under 20 in approved education or training programs.
Dan Tomlinson, Exchequer Secretary, highlighted the simplification of tax procedures with the new HMRC system. By signing up, parents will receive a modified tax code reflecting their HICBC deduction, with income fluctuations and Child Benefit adjustments reflected in real-time.
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