If you are employed or receive a pension and have no other reason to file a tax return, you can pay the High Income Child Benefit Charge through your tax code instead of registering for Self Assessment. You register once using HMRC’s online service, HMRC changes your tax code, and the charge is collected from your pay. You must register on or before 31 January after the tax year concerned, or Self Assessment becomes compulsory.

What does paying the charge through PAYE mean?

The High Income Child Benefit Charge is an income tax charge under section 681B of the Income Tax (Earnings and Pensions) Act 2003. It has traditionally been collected through Self Assessment, and HMRC’s PAYE manual at PAYE14015 still describes it that way, which meant registering and filing a full return each year even where your only other income was a salary already taxed under PAYE. HMRC’s guidance now offers a second route: a GOV.UK service to pay the charge through your regular PAYE deductions.

Once you are registered, GOV.UK says your payments are set up and you do not have to do anything else unless your circumstances change. HMRC sends details of your new tax code to you and your employer, or to your pension provider if you receive a pension. GOV.UK’s tax code guidance lists the High Income Child Benefit Charge as one of the deductions HMRC can take off your tax free amount, so the charge is recovered gradually through the extra tax on each payslip.

The rules on who is liable and how much is due are covered in High Income Child Benefit Charge explained. This page deals only with the PAYE payment route.

Who can pay the charge through their tax code?

GOV.UK says you can only use PAYE if all of these apply:

  1. you do not need to send a tax return for another reason, for example because you have become self employed;
  2. you are paying the charge for the current or previous tax year onwards; and
  3. it is on or before 31 January after the tax year you need to pay for.

GOV.UK’s example: to pay the charge for 2025 to 2026 through PAYE, you must act on or before 31 January 2027. After that date, Self Assessment is the only route for that year. The HICBC overview also gives earning interest on savings or investments as an example of another reason to file, so check whether anything else already puts you in Self Assessment before choosing PAYE. See Self Assessment deadlines and penalties.

Are you the person who has to pay?

Before registering, be sure the charge falls on you rather than your partner. Under section 681B you are liable if your adjusted net income for the year exceeds £60,000 and either you receive Child Benefit and no partner has higher adjusted net income, or your partner receives it and your adjusted net income is higher than theirs. In plain terms, the partner with the higher income pays, regardless of who receives the benefit.

A partner means someone you are married to, in a civil partnership with or living with as if you were, and from whom you are not permanently separated. Adjusted net income is total taxable income less certain reliefs, such as pension contributions and Gift Aid; see adjusted net income explained.

What do you need before you start?

The online service does not let you save your progress, so gather everything first. GOV.UK lists:

  • your adjusted net income;
  • your partner’s adjusted net income, if you have a partner;
  • the National Insurance number of any partner who received Child Benefit in the last tax year; and
  • the dates of your relationships with any partners receiving Child Benefit.

You sign in with your HMRC sign in details, or create them, and you may be asked to prove your identity, which normally involves photo identification such as a passport or driving licence.

How much will be collected?

Section 681C sets the charge at 1% of the Child Benefit received for every £200 of adjusted net income above £60,000, up to 100% of the benefit. Once adjusted net income reaches £80,000 the charge equals the full benefit. Section 681C(3) rounds the percentage, and the final charge, down to whole numbers.

GOV.UK currently gives Child Benefit rates of £27.05 a week for the eldest or only child and £17.90 a week for each additional child.

Illustration only. Priya is employed with adjusted net income of £70,000. Her partner, who earns less, claims Child Benefit for two children, and for simplicity we assume 52 weeks of payments.

Step Figure
Weekly Child Benefit (£27.05 plus £17.90) £44.95
Annual Child Benefit (52 weeks) £2,337.40
Income above £60,000 £10,000
Percentage (£10,000 divided by £200) 50%
Charge, rounded down £1,168

Through PAYE, HMRC reflects this in Priya’s tax code instead of sending her a tax return. Her employer simply operates the new code HMRC sends.

Can you switch from Self Assessment to PAYE?

Yes, if the only reason you have been filing tax returns is the charge. GOV.UK says you need to phone HMRC to leave Self Assessment and register to pay through PAYE. Have the same information ready: your adjusted net income, your partner’s National Insurance number if they received Child Benefit in the last tax year, and the dates of the relationship. If you still need to file for another reason, the charge must stay in your Self Assessment return.

What happens when your circumstances change?

  • Separation. If you pay through PAYE and separate from your partner, you must tell HMRC through the online service or by contacting HMRC. HMRC will then adjust your tax code so that you no longer pay the charge. Short periods apart, such as a hospital stay or working away, do not count as separation.
  • A new partner. The charge applies from the date you move in together until you permanently separate or the Child Benefit stops.
  • Income changes. If your adjusted net income for the whole tax year is not over the threshold, no charge is due. The Child Benefit tax calculator on GOV.UK gives an estimate.
  • Opting out. You can stop or restart Child Benefit payments at any time. If you opt out you pay no charge but stay registered, which protects National Insurance credits towards the State Pension.

What if your partner will not share their details?

You can write to HMRC asking whether your partner or former partner receives Child Benefit or has a higher income than you. HMRC replies yes or no only, and will not disclose financial information or their National Insurance number. You can ask only if you live together or separated during the tax year in question. GOV.UK gives the address as Pay As You Earn and Self Assessment, HM Revenue and Customs, BX9 1AS, and lists the details your letter should include.

What mistakes cause problems with the PAYE route?

  • Missing 31 January. After that date you must register for Self Assessment for that year. If you do not usually file, GOV.UK says you must tell HMRC by 5 October after the tax year, and a penalty may follow if you do not. See HMRC failure to notify penalties.
  • Using PAYE when a return is required anyway. If anything else requires a return, such as starting self employment, the charge goes on that return.
  • Not checking the new code. Look at the code notice and your payslip after registering, and check the deduction is in the code used by your main job. See PAYE tax codes.
  • Forgetting to report a separation. Without it, the code keeps collecting a charge that may no longer be due.

If HMRC opens a check into your return, tax investigation insurance pays your accountant’s fees. Solar Protect cover pays up to £100,000 with no excess; it never pays tax, interest or penalties. Read how our cover works or get a quote.

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Sources

Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 19 October 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.