If you’re a parent earning over £50,000, there are big updates to the High Income Child Benefit Charge (HICBC) that could affect your take-home income – and your tax obligations.
These changes came into force from 6 April 2024. And as of summer 2025, there’s a new way to manage how the charge is paid.
Here’s what you need to know.
✅ What Changed from April 2024?
1. The threshold went up. You now only start paying the HICBC if your income is over £60,000. Previously, it kicked in at £50,000.
2. The taper has been extended.
You lose 1% of your Child Benefit for every £200 of income over £60,000. Once you hit £80,000, the charge cancels out the full benefit.
3. More families benefit.
Nearly half a million households are better off under the new rules. Many can now keep all or more of their Child Benefit.
New from Summer 2025: PAYE Option for Some
There’s now a simpler way to pay the charge. If you become newly liable for the HICBC from April 2025, you can now choose to have it collected through your tax code via PAYE.
You don’t need to register for Self Assessment.
You just use a new digital service on the HMRC app to set it up.
This makes things much easier for employed individuals who only need to report the HICBC.
⚠️ If you’ve been paying the charge in previous years, you’ll still need to file a tax return (for now). HMRC has said it plans to expand this option further in the future.
What You Should Do Now
Check your income.
If your income is now below £60,000, the charge no longer applies.
Restart your Child Benefit.
If you opted out in the past, you may want to start claiming again. You can backdate a claim by up to 2 years.
Use the HMRC app if newly affected.
If you’re just becoming liable, using the PAYE option could save you a lot of admin.
What’s Next?
A bigger reform is on the way.
From April 2026, the government plans to move to a household-based system for assessing the charge – instead of individual income. It’s not law yet, but it’s in development.
We’ll keep you updated as the details emerge!