New HMRC Service Now Live – Real-Time HICBC Payments via PAYE
As of September 2025, HMRC has launched a new digital service that allows eligible taxpayers to pay the High Income Child Benefit Charge (HICBC) in real time through their PAYE tax code.
This is a welcome development for many, as it removes the need to file a Self Assessment tax return where HICBC is the only reason you were previously required to do so.
Who Needs to make HICBC payments?
HICBC applies when:
- You or your partner receive Child Benefit, and
- One of you has an adjusted net income over £60,000.
The charge is based on:
- 1% of the Child Benefit received for every £200 over £60,000.
Before April 2024, the threshold was £50,000, and the charge applied at 1% per £100 over that limit.
The charge is always payable by the higher earner in the household, regardless of who receives the Child Benefit.
The Previous Process
Until now, affected individuals had to either:
- Opt out of receiving Child Benefit, or
- Register for Self Assessment and file a return each year (typically by 5 October following the end of the relevant tax year).
Where the charge was under £2,000, HMRC could collect it through your PAYE code — but only in a later tax year, meaning the payment was always retrospective.
What’s Changed?
In the Spring Budget 2025, HMRC confirmed plans to simplify HICBC payments — and the new service is now live.
You can now:
- Pay HICBC through your PAYE code in the year it relates to.
- Avoid registering for Self Assessment if HICBC is your only reason for doing so.
Who Can Use the New Service?
The new service is designed for individuals who:
- Are employed and taxed via PAYE;
- Have no other reason to complete a Self Assessment tax return;
- Previously filed returns solely due to HICBC.
To use the service:
- You must deregister from Self Assessment (if currently enrolled)
- You must register for the new service by 31st January 2026 for the 2024/25 tax year.
If you’ve not yet filed your 2024/25 return, and sign up now, you’ll have the option to:
- Pay both your 2024/25 and 2025/26 HICBC via your 2025/26 PAYE code.
- From 2026/27 onwards, the charge should be collected in the same year it arises.
What You’ll Need
Before signing up, make sure you have:
- Confirmation you’ve deregistered from Self Assessment (if applicable).
- Your partner’s National Insurance number (if they receive the Child Benefit).
- Details of any relationship changes during the relevant tax year.
HMRC may also request ID verification (e.g. passport or driving licence) when you access the service.
High Income Child Benefit Charge: Pay the tax charge through PAYE – GOV.UK
How the Service Works
Once you’ve registered:
- HMRC confirms you’ve left Self Assessment (if relevant).
- You’ll answer questions to confirm which partner has the higher adjusted net income.
- If your partner is the Child Benefit claimant, their NI number will be used to pull exact benefit details.
- You’ll confirm any relationship changes during the year.
After confirming all details:
- You’ll authorise collection of HICBC via your PAYE coding notice.
- You’ll receive email confirmation, and
- Your PAYE code will typically update within 48 hours.
Your updated tax code will:
- Recover amounts due for months before you registered, and
- Adjust your tax going forward to collect HICBC in real time.
What About Future Changes?
The new system is designed to:
- Automatically update for life events such as:
- New children;
- Children turning 16 (unless they continue in approved education or training).
For other changes, such as a new or former partner, you’ll still need to notify HMRC — though this should soon be possible within the new service itself.
High Income Child Benefit Charge: Opt out of Child Benefit payments – GOV.UK
Final Thoughts
This new HICBC service represents a practical and time-saving step forward.
- It simplifies the process
- Helps avoid unnecessary tax returns
- Allows real-time payment through PAYE — with less paperwork
If you’re unsure whether HICBC payments apply to you, or need help deregistering from Self Assessment, we’re always happy to advise.
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