Parents in the UK who receive Child Benefit and have a higher income may need to repay some or all of the benefit through the High Income Child Benefit Charge (HICBC). HM Revenue and Customs (HMRC) provides a digital service that allows eligible people to pay this charge through their regular PAYE Income Tax payments instead of submitting a Self Assessment tax return solely because of the charge.

The PAYE option can make payments easier to manage because HMRC adjusts the tax code used by an employer or pension provider. The extra tax is then collected through regular salary or pension payments. This is often described as paying monthly, although the actual deductions depend on the tax code and payment schedule.

For the 2026–27 tax year, the main income threshold remains £60,000 in adjusted net income. The charge increases gradually for income between £60,000 and £80,000 and generally equals the full Child Benefit amount when adjusted net income reaches £80,000.

Official guidance: Pay the High Income Child Benefit Charge through PAYE.

1. What is the High Income Child Benefit Charge?

The High Income Child Benefit Charge is a tax charge that can apply when a person or their partner receives Child Benefit and one of them has adjusted net income above the applicable threshold.

The charge is based on income rather than simply on who receives the Child Benefit payment. In some families, one parent receives Child Benefit while the other parent has the higher income and becomes responsible for paying the charge.

For tax years from 2024–25 onwards, the charge starts when adjusted net income exceeds £60,000. It increases by 1% of the Child Benefit amount for every £200 of income above £60,000. When adjusted net income reaches £80,000, the charge generally equals 100% of the Child Benefit received.

Parents can usually choose between receiving Child Benefit payments and paying the tax charge, or claiming Child Benefit but opting not to receive the money. Keeping the claim active can preserve National Insurance credits for an eligible parent who is not working or does not earn enough to build qualifying years for the State Pension.

Official overview: High Income Child Benefit Charge rules.

2. What is the PAYE monthly payment option?

PAYE stands for Pay As You Earn. It is the system HMRC uses to collect Income Tax from employment income and many workplace pensions.

Under the HICBC PAYE option, eligible people can register with HMRC to pay the charge through their regular Income Tax deductions. HMRC calculates an appropriate tax code adjustment and sends the new code to the employer or pension provider.

This means that an eligible employee may see a lower tax-free allowance in their tax code and more Income Tax deducted from their salary. A pension recipient may see the adjustment applied to a pension paid through PAYE.

The service is designed to remove the need for some parents to complete Self Assessment solely because they have a High Income Child Benefit Charge liability. It does not remove the requirement to file a tax return when another rule means a return is necessary.

Official service: Register to pay through PAYE.

3. What are the income thresholds for 2026–27?

The HICBC threshold for 2026–27 is based on adjusted net income. It is not based solely on your salary before pension contributions, your take-home pay or the combined income of both partners.

The examples show the standard calculation: the charge increases by 1% for each £200 of adjusted net income above £60,000. Actual liability depends on the amount of Child Benefit received during the tax year and the applicable rules.

Official threshold guidance: Check the HICBC income thresholds.

4. Who can use the PAYE payment service?

You can generally use the PAYE service if all the relevant HMRC conditions apply to your circumstances. The service is intended for people paying the charge for the current or a previous tax year onwards who do not need to submit a tax return for another reason.

• You have a High Income Child Benefit Charge to pay.
• You do not need to file a Self Assessment tax return for another reason, such as self-employment income.
• You are paying the charge for the current or a previous tax year onwards.
• You apply by 31 January after the tax year for which the charge is due.
• You can provide the income and partner details requested by HMRC.

For example, if you need to pay the charge for the 2025–26 tax year, HMRC states that you can choose the PAYE route if you apply on or before 31 January 2027 and meet the other conditions.

For a charge relating to the 2026–27 tax year, the corresponding deadline is generally 31 January 2028. Check the live HMRC service for the conditions that apply to the specific tax year.

Official eligibility details: Who can pay the charge through PAYE.

5. Who must continue using Self Assessment?

The PAYE option is not suitable for everyone. You generally must use Self Assessment if you need to submit a tax return for another reason or if you miss the deadline for using the PAYE service for the tax year concerned.

Examples of circumstances that may require Self Assessment include:

• You are self-employed and need to report taxable profits.
• You have other income that means you must complete a tax return.
• HMRC has told you that you must file a return for another reason.
• You are outside the time limit for registering to pay the charge through PAYE for the relevant tax year.

If you previously completed a Self Assessment tax return only because of HICBC and no longer need to submit one for another reason, you may be able to switch to PAYE. HMRC says you need to contact it by phone to leave Self Assessment and register for PAYE collection.

Do not stop submitting a required tax return until HMRC confirms that you no longer need to do so. Failing to register or report the charge when required can lead to penalties.

Official guidance: Self Assessment rules for HICBC.

6. How to register for monthly PAYE deductions

If you meet the eligibility conditions, you can use the online HMRC service to register for PAYE collection. You will need to sign in and provide information about your income and family circumstances.

1. Open the official HMRC page for paying the High Income Child Benefit Charge through PAYE.
2. Select the option to start the online service and sign in.
3. Provide your adjusted net income for the relevant tax year.
4. Provide your partners adjusted net income if you have a partner.
5. Enter the National Insurance number of any partner who received Child Benefit in the last tax year, when requested.
6. Provide the dates of relationships with partners receiving Child Benefit where required.
7. Complete the service and follow the confirmation instructions.
8. Check the revised tax code information sent by HMRC to you and your employer or pension provider.

The online service does not allow you to save your progress, so gather the necessary information before starting. You may also need to prove your identity when signing in.

7. What information should you prepare?

Before starting the service, gather the following information so you can complete the application without interruption.

If you cannot obtain information from a current or former partner, HMRC has a process for requesting limited confirmation about whether that person receives Child Benefit or has a higher income. HMRC will not disclose their financial details or National Insurance number through this process.

Official information: Information needed for PAYE registration.

8. How does HMRC collect the charge through your tax code?

After registration, HMRC sends details of the new tax code to you and your employer. If you receive PAYE pension income, HMRC sends the revised code to your pension provider.

The adjustment changes the amount of income that can be received before Income Tax is deducted. A lower tax-free allowance generally results in more tax being collected from regular pay or pension payments.

For example, if HMRC calculates that you owe a charge for Child Benefit, it can collect that liability through the revised tax code over the applicable collection period. The deductions may appear on payslips or pension statements as part of the overall Income Tax calculation rather than as a separate Child Benefit payment.

The exact deduction will depend on the tax liability, the code issued, the tax year and the income source. There is no single fixed monthly amount that applies to every family.

Once the service is set up, you generally do not need to take further action unless your circumstances change. Check your tax code and contact HMRC if your income, partner situation or Child Benefit circumstances change.

9. Examples of how the charge is calculated

The HICBC is calculated using adjusted net income and the amount of Child Benefit received during the tax year. The following examples demonstrate the percentage of Child Benefit that may be repayable under the standard rules.

The £1,500 Child Benefit amount is an illustration only, not a standard award. Your actual charge depends on the total Child Benefit paid or due for the relevant tax year and your adjusted net income.

Use the official calculator to estimate the charge before registering for PAYE: Child Benefit tax calculator.

10. What is adjusted net income?

Adjusted net income is the figure HMRC uses to determine whether the HICBC applies. It starts with total taxable income before Personal Allowances and then deducts certain reliefs and eligible contributions.

Income that may be included in the calculation includes:

• Salary and bonuses.
• Taxable benefits provided by an employer, such as a company car or private medical insurance.
• Self-employment profits.
• Taxable pension income.
• Taxable savings interest and dividends.
• Rental income and other taxable income.

Certain pension contributions and Gift Aid donations can reduce adjusted net income for this calculation when they meet the relevant rules. This is why your adjusted net income may be different from your gross salary or the amount shown as take-home pay.

If your income is close to £60,000 or £80,000, calculate adjusted net income carefully. An inaccurate estimate may lead to an incorrect expectation of how much Child Benefit must be repaid.

Official guidance: How adjusted net income affects HICBC.

11. Which partner is responsible for paying the charge?

The person responsible for paying HICBC is generally the partner with the higher adjusted net income when both partners are above the threshold and one or both receive Child Benefit.

The rules can apply even if the higher earner does not personally receive the Child Benefit payment. For example, one parent may receive Child Benefit into their bank account while the other parent has the higher income and is liable for the tax charge.

The definition of partner includes someone you are married to, in a civil partnership with or living with as if you were, provided you are not permanently separated. Changes in relationship circumstances can affect who is responsible for the charge and for which period.

If you separate permanently, move in with a partner or have another significant change, update HMRC promptly. The charge may need to be recalculated based on the dates and circumstances involved.

Official guidance: How changes in your circumstances affect HICBC.

12. Should you stop receiving Child Benefit instead?

If you expect to repay all of your Child Benefit through HICBC, you may consider claiming Child Benefit but opting out of payments. This can avoid receiving money that would otherwise be repaid through the tax system.

However, stopping the payments is different from cancelling the Child Benefit claim. If you remain registered but choose not to receive payments, you can preserve important benefits associated with the claim, including National Insurance credits for an eligible parent and the automatic allocation of a National Insurance number to the child at age 16.

This distinction can be especially important if one parent is not working or has low earnings. Before changing a claim, consider the effect on National Insurance credits and future State Pension entitlement.

If you receive Child Benefit and pay HICBC through PAYE, you do not necessarily need to opt out. You can continue receiving payments and have the applicable charge collected through your tax code, provided you meet the PAYE conditions.

Official guidance: Options for receiving Child Benefit and paying the charge.

13. What if your income or family circumstances change?

Your HICBC liability can change when your income or family circumstances change. You should review your position if any of the following happens:

• Your adjusted net income falls below £60,000.
• Your income rises above £80,000.
• You or your partner starts or stops receiving Child Benefit.
• You move in with a partner or permanently separate.
• Your employment, pension or self-employment income changes significantly.
• You start or stop needing to submit a Self Assessment tax return.

If you are paying through PAYE and your circumstances change, update the information with HMRC so the tax code can be reviewed. If your adjusted net income falls below the threshold and you no longer need to complete a tax return, you should tell HMRC.

Do not assume that the tax code will update immediately when your salary changes. Check the latest HMRC information and review your payslip or pension statement.

Official guidance: Report a change in circumstances.

14. Frequently asked questions

Conclusion

The PAYE option offers an alternative for eligible UK parents who need to pay the High Income Child Benefit Charge. Instead of completing a Self Assessment tax return solely for this charge, they can register with HMRC and have the amount collected through regular Income Tax deductions.

For 2026–27, the charge starts above £60,000 in adjusted net income and generally reaches the full Child Benefit amount at £80,000. Whether PAYE is available depends on your circumstances, including whether you need to file a tax return for another reason and whether you apply by the relevant deadline.

Before registering, calculate your adjusted net income, gather the requested partner details and check the official HMRC service. If you already file Self Assessment for other reasons, you will generally need to continue using that route.