Thousands of households receiving Child Benefit can now settle the high income tax charge using their tax code for the first time. Child Benefit provides £26.05 weekly for the first child and £17.25 for each additional child. If your household earns over £60,000, you must repay 1% of Child Benefit for every £200 over this threshold, known as the High Income Child Benefit Charge.

Upon exceeding £80,000 in earnings, the full Child Benefit amount is repayable. While traditionally paid through self-assessment, there is now the option to pay this charge via the PAYE tax code. This change will be implemented by HMRC, with the deduction directly from your pay. To utilize this service, you must be employed and not required to file a self-assessment return for other reasons.

Opt-in for the 2024/25 tax year, which ended on April 5, 2025, is available until January 31, 2026. If self-assessment is already mandatory for you, the new PAYE option cannot be used. High-income households can claim Child Benefit without receiving payments, allowing for National Insurance credits towards the state pension without the charge.

Child Benefit is accessible to over seven million families caring for children under 16 or under 20 in approved education or training. Eligible education includes A-Levels and NVQs but excludes university or BTEC qualifications. The child must reside with you or have equivalent care costs covered to claim the benefit.

Fostering a child or caring for a friend or relative may also entitle you to claim Child Benefit. There is no limit on the number of children you can claim for, but if two individuals care for a child, only one can claim. The updated system aims to simplify tax processes, eliminating the need for many parents to file tax returns for the High Income Child Benefit Charge.