With the launch of the new HMRC payment system, more than 100,000 families received an increase in Child Benefit

The dreaded High Income Child Benefit Charge through self-assessment will no longer be a burden for thousands of households

According to new data, a new HMRC online service will save over 100,000 families from having to manually pay a Child Benefit charge.

According to data gathered by wealth management firm Quilter through a Freedom of Information (FOI) request shared with BFIA, the households will not be required to pay the High Income Child Benefit Charge (HICBC) through a self-assessment tax return following the implementation of the new payment system in September.

Families with the highest earner earning more than £60,000 annually are required to pay the HICBC; deductions of one percent are made for each £200 over this amount. All Child Benefit must be reimbursed once earnings hit 80,000 or more.

Affected families had to manually pay this fee by self-assessment prior to September 23, 2025, which resulted in some forgetting to accumulate enormous bills.

However, since then, a new system has been implemented that allows some individuals to have their HICBC collected directly through Pay As You Earn (PAYE) from their pension or salary.

In the 2021 - 2022 fiscal year, 102,000 taxpayers were responsible for the HICBC and would have paid it automatically under the new payment system, according to the FOI data that Quilter was able to obtain.

As more households were forced to cover the cost, that number increased to 126,000 in 2022 - 2023.

Quilter stated that even though the HICBC threshold was raised from 50,000 to 60,000 in 2024, which might have decreased the number of families paying the fee, wage growth is probably going to have contributed more to the HICBC net.

As a result, over 100,000 households will probably benefit from the new payment system and not have to go through the self-assessment procedure each fiscal year.

Quilter's tax and financial planning specialist, Shaun Moore, stated: "Many parents with higher incomes have been forced into the self-assessment system for years just to repay a portion of their Child Benefit, even though their income was already subject to PAYE taxes.

"Allowing the charge to be collected through a tax code will eliminate a great deal of frustration and return the process to how most people expect their taxes to operate. The "

How can I use the new system to pay the HICBC?

If they qualify, taxpayers can pay the HICBC through PAYE on a specific page on HMRC's website.

If you are not required to file a tax return for any other reason, you are qualified. For instance, you won't be eligible for this system if you work for yourself and typically have to file a self-assessment tax return.

The procedure must be finished by January 31st of the year following the tax year for which you must make the payment. Therefore, you must apply to pay by January 31, 2027, at the latest, if you wish to pay the charge through PAYE for the current tax year (20252026).

If you currently file a self-assessment tax return only to pay the HICBC, you must register to pay through PAYE and get in touch with HMRC to leave the self-assessment. You should dial 0300 200 3310.

Your tax code will then be updated by HMRC, and you will pay the fee by deducting it from your pension or salary.

If your income exceeds £80,000, is it worthwhile to claim Child Benefit?

If you or your partner make more than 80,000, you may believe there is no point in claiming Child Benefit because you will repay the money through HICBC.

You will be eligible for National Insurance credits if your child is under the age of twelve, so it is still worthwhile to claim the benefit and inform HMRC that you do not want to receive the payments.

The credits can fill in some gaps in your National Insurance record and help you increase your state pension, which is especially helpful for those who are missing NI years and aren't eligible for a full state pension.

Additionally, it means that you won't need to apply for your child's NI number. Typically, the number is sent prior to their 16th birthday.