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HMRC writing to UK households demanding they pay 100 per cent' backLabour Party government's tax arm is also "cutting red tap" so families can pay it back through their PAYE.NewsJames Rodger

Content Editor11:57, 22 Apr 2025HMRC writing to UK households demanding they pay 100 per cent' back HMRC is demanding UK households who fall foul of the Child Benefit rules pay back an

eye-watering 100 per cent. The Labour Party government's tax arm is also "cutting red tap" so families can pay it back through their PAYE.

If either the claimant or their partner has an individual income of between £60,000 and £80,000, the higher earner will be subject to the High Income Child Benefit Charge. For families who

fall into this category, the online Child Benefit tax calculator provides an estimate of how much benefit they will receive, and what the charge may be.

‌ From the summer, families will have the option to report their Child Benefit payments and pay the charge directly through their PAYE tax code instead of filing a Self Assessment tax

return.

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The new digital service will be optional and those who choose to pay the charge through their Self Assessment can continue to do so.

Article continues below A person living in a household subject to the High Income Child Benefit Charge will still receive National Insurance credits if they claim Child Benefit but choose to

opt out of receiving payments.

The Child Benefit rates for the 2024 to 2025 tax year were £25.60 a week for your first or only child and £16.95 for each additional child.

The High Income Child Benefit Charge threshold increased to £60,000 on 6 April 2024. Recent data obtained by Quilter reveals a dramatic 99% reduction in the number of penalties handed out to

families affected by the High Income Child Benefit Charge. In the 2023/24 tax year, only 75 penalties were issued for Failure to Notify (FTN), a significant drop from the 7,007 penalties

imposed in the previous year.

Article continues below If your income exceeds £80,000, you are required to repay the full amount of your Child Benefit - 100 per cent.

This repayment is enforced through the High Income Child Benefit Charge, which is typically settled annually by submitting a self-assessment tax return.