The high income tax charge is normally paid through self-assessment – but now, you can also pay the charge through your PAYE tax code
Martin Lewis’ MoneySavingExpert.com website has explained a huge change to Child Benefit that is now in force.
Parents or carers are awarded £26.05 a week in Child Benefit for their first child, then £17.25 for any additional child. However, if you are on a high income, then you may have to pay back some of your Child Benefit.
This is known as the High Income Child Benefit Charge. You have to pay back 1% of your Child Benefit for every £200 you earn once you, or your partner, earn over £60,000. This charge applies for income above £60,000.
Once you earn over £80,000, you are no longer entitled to any Child Benefit. The high income tax charge is normally paid through self-assessment – but now, you can also pay the charge through your PAYE tax code.
HMRC will change your tax code and the charge will be taken straight from your pay. MSE explains that you can use this service if you’re employed and don’t need to file a self-assessment return for any other reason.
You have until January 31, 2026 to opt in for the latest 2024/25 tax year, which ended on April 5, 2025. If you normally have to file a self-assessment anyway, then you won’t be able to use the new PAYE option.
MSE explains: “If you have a partner, it’s the person with the highest income that has to pay the charge. So either you or they may have to follow the steps below.
“If you earn more but it’s your partner that receives Child Benefit, you’ll need to provide their National Insurance number as part of the process.
“HMRC determines a ‘partner’ as someone you’re married to, in a civil partnership with, or live with as though you were (provided you’re not permanently separated).”
If you’re a high income household, but don’t want to pay the high income tax charge, then you can a claim for Child Benefit without getting the payments.
This would mean you still get National Insurance credits which count toward your state pension. You claim Child Benefit if you’re responsible for a child under the age of 16, or if they are under the age of 20 and still in approved education or training.
The child normally has to live with you, or you pay at least the same amount as Child Benefit toward looking after them, in order for you to claim the payments.
You can claim Child Benefit if you fostered a child, as long as the local council is not paying anything towards their accommodation or maintenance, if you adopted your child.
You may also be entitled if you’re looking after a child for a friend or relative. There is no limit for how many children you can claim Child Benefit for, but if two people look after a child, only one person can claim Child Benefit.