Child benefit gradually reduces once a parent earns £60,000 – then reaches zero once they hit £80,000.
Parents in this salary bracket initially receive the full amount but have to repay a portion – it’s known as the High Income Child Benefit Charge.
Traditionally, they’ve had to do this via self-assessment, but the government announced last year it would simplify the system for the tens of thousands of affected parents.
The new rules came into effect this week and allow parents to choose for the money to come out of their pay packet via PAYE.
They will need to tell HMRC they won’t be filing a self-assessment by the 31 January deadline.
Some 100,000 people are newly eligible for the HICBIC – HMRC will notify them of the change.
Exchequer secretary Dan Tomlinson said: “Tens of thousands of parents will no longer have to go through the extra effort of filing a tax return as this new simple and straightforward system takes the stress out.
“If they sign up they will then be issued with a new tax code which will reflect their HICBC deduction.
Who can get child benefit and how much is it?
You get it if you bring up a child under 16 – or under 20 if they are in approved education or training.
The amount is £26.05 per week for your eldest or only child and £17.25 for an additional child.

Leave a Reply