Child Benefit HICBC Deductions Start August 2025

Starting August 2025, high earners in the UK affected by the high income child benefit charge (HICBC) will no longer have to file self-assessment tax returns, as they will be able to report their child benefit payments directly through their PAYE earnings. This new online service aims to simplify the process for employed individuals earning over £60,000, alleviating confusion caused by previous filing requirements. The change comes after numerous appeals and cases where HMRC has faced challenges due to taxpayers' lack of awareness regarding their obligations. The modernization is expected to cost HMRC around £5 million annually, with an increase projected by 2029-30. Additionally, families can utilize calculators to determine their child benefit entitlements based on new regulations for the 2024-25 financial year, where the income threshold for repayment has also been adjusted. This initiative is seen as a significant relief for many parents navigating the complexities of child benefit taxation.