Thousands of households receiving Child Benefit can now settle the high income tax charge using their tax code for the first time. Child Benefit amounts to £26.05 weekly for the first child and £17.25 for each additional child. If you or your partner have a high income, you might need to repay a portion of this benefit.

Individuals earning over £60,000 must repay 1% of their Child Benefit for every £200 over this threshold, known as the High Income Child Benefit Charge. Once earnings surpass £80,000, the entire Child Benefit must be repaid. Previously, this charge was settled through self-assessment, but now there’s the option to pay it via the PAYE tax code.

To benefit from this new system, employed individuals not requiring self-assessment for other reasons can have the charge deducted directly from their pay. Opt-in for the 2024/25 tax year, ending on April 5, 2025, is available until January 31, 2026. However, those who typically file self-assessment cannot utilize the PAYE option.

Families with high incomes can claim Child Benefit without actually receiving payments, ensuring National Insurance credits for the state pension without incurring the charge. Child Benefit is accessible to over seven million households responsible for children under 16, or under 20 in approved education or training.

Child Benefit eligibility extends to fostering or adopting a child, caring for them on behalf of a friend or relative, and having the child live with you or contributing an equivalent amount to their care. There is no limit on the number of children eligible for Child Benefit per household, but only one person can claim if multiple caregivers are involved.

Exchequer Secretary Dan Tomlinson emphasized the simplification of tax processes through modernizing HMRC, reducing the burden of filing tax returns for parents subject to the High Income Child Benefit Charge. By signing up, individuals receive a new tax code reflecting the deduction for HICBC, with adjustments for income fluctuations and Child Benefit entitlement made in real-time within the tax code.