HMRC Launches Real Time Child Benefit Charge
HMRC has launched the new Real Time Child Benefit Charge (HICBC), an online service that allows taxpayers to pay the charge directly through PAYE. This new system simplifies the process, speeds up payments, and reduces the need for individuals to register for Self Assessment when the HICBC is their only reason for doing so.
Background to the High Income Child Benefit Charge
Since April 2024, the High Income Child Benefit Charge has applied to households receiving Child Benefit where one person earns more than £60,000 in adjusted net income. The higher earner pays a charge equal to 1% of the Child Benefit received for every £200 earned above this threshold.
Previously, the charge started at £50,000 and increased by 1% for every £100 earned above that level. Anyone affected had to either opt out of Child Benefit or register for Self Assessment to declare the charge by 5 October following the tax year.
If the charge was under £2,000, HMRC collected it through the PAYE code later. However, it was not possible to pay the charge in real time until now.
Introducing the New Real Time Child Benefit Charge Service
Announced in the 2025 Spring Statement and launched in September 2025, the Real Time Child Benefit Charge service enables employees to pay through PAYE instead of submitting a tax return. The new system collects the charge within the same tax year, depending on when registration occurs.
Taxpayers must register by 31 January after the end of the relevant tax year. Anyone currently in Self Assessment must deregister before signing up.
For example, someone joining now who has not yet filed their 2024/25 return can pay both their 2024/25 and 2025/26 charges through PAYE during the 2025/26 year. From 2026/27 onwards, HMRC will collect the charge within the same year it arises.
Information Needed to Register
Before registering, taxpayers should confirm they have left Self Assessment if necessary. They will also need their partner’s National Insurance number (if the partner claims Child Benefit) and details of any relationship changes during the year.
HMRC may ask for proof of identity, such as a passport or driving licence, when accessing the service.
How the Real Time Service Works
After registration, HMRC checks whether the taxpayer has deregistered from Self Assessment and identifies which partner earns more. If the Child Benefit claimant is the higher earner, HMRC links their National Insurance number to the claim to calculate the charge accurately.
Taxpayers confirm any changes in circumstances during the year. If someone has had more than one partner claiming Child Benefit, the system connects multiple claims to ensure accuracy. Complex cases, such as separating and reuniting with a partner, may still need HMRC support.
Once details are confirmed, HMRC updates the taxpayer’s PAYE code, usually within 48 hours. The new code collects both past and future HICBC amounts for that tax year.
Benefits of the Real Time Child Benefit Charge Service
Early users report that the Real Time Child Benefit Charge service is straightforward and convenient when all information is available. Once records are linked, updates such as new children or children turning 16 occur automatically.
Relationship or household changes still need to be reported manually, but these updates can be managed easily online.
The new service makes compliance simpler, reduces administration, and ensures fewer taxpayers need to complete a Self Assessment return solely to pay the HICBC. It represents a major step forward in making tax payments faster and more efficient.