HMRC announced that, from 7 April 2025, parents will receive £26.05 per week for the eldest (or only) child and £17.25 per week for each additional child.
Where either the claimant or their partner has an individual income above £60,000, the higher earner will be subject to the HICBC and required to repay a proportion of the Child Benefit based on their level income above £60,000. The Child Benefit is fully clawed back where individual income exceeds £80,000.
Historically, taxpayers were required to register for self-assessment and report the charge through a self-assessment tax return.
From this summer families will have the option, using a new digital service being introduced by HMRC, to report their Child Benefit payment and pay the charge directly through their PAYE tax code instead of filing a self-assessment return.
The new digital service will be optional and those who choose to pay the charge through their self-assessment can continue to do so. Taxpayers who are required to file self-assessment returns for other reasons will still need to report the HICBC on their tax returns.
The new system will be welcome for eligible employed parents – cutting red tape and relieving the burden of completing a self-assessment return, if they opt in to receive the Child Benefit payments.
It is important to note that whilst parents will not have to file a tax return, they will have to make sure they register through HMRC’s online service.