Spring Statement 2025 – High Income Child Benefit via PAYE from August 2025

Spring Statement 2025 – High Income Child Benefit via PAYE from August 2025

From August 2025, employed individuals earning over £60,000 and falling under high-income child benefit charge (HICBC) will be able to report their family’s child benefit payments through a new HMRC online service.

Individuals will need to register with HMRC, and then they will be able to opt to pay the HICBC charge directly through PAYE via their company payroll, without having to register to complete a self-assessment tax return.

This means that parents with one of the married or civil partnership earning over £60,000 will no longer have to file a self assessment tax return, if this was the reason they needed to do so.

The new system will be a relief for high earners caught by the HICBC system, which has resulted in confusion for taxpayers and a number of appeals at tax tribunals between taxpaying parents and HMRC.

Currently thousands of employees have been forced to file a self-assessment tax return every year, and HMRC case workers have pursued individuals relentlessly, many of whom were not aware they had to pay the charge.

Although parents will not have to file a tax return, assuming they have no other additional income outside their PAYE earnings, they will have to use the online service to register their PAYE income from August 2025.

Once the new system is ready to use, further details will be issued by HMRC.