Parents who earn more than 60,000 pounds will have a simpler way to pay a high -income child entitlement fee (HICBC).
From the summer of 2025, HMRC offers a new option that allows the payment of fees through Paye discounts directly from Paylips.
This change means that working parents will not need to register in self -evaluation to pay the fees.
The new system will be implemented by launching a digital service next summer.
Hmrc sign
Palestinian Authority
This step aims to simplify the process of families affected by the charge.
High -income entitlements fees apply to individuals who earn more than 60,000 pounds in the tax year 2024/25.
This threshold will remain unchanged for the tax year 2025/26, which begins on April 6.
The charge is calculated as one percent of the total child entitlements that were received for every 100 pounds of income over the £ 60,000 threshold.
For those who have an income of up to 80,000 pounds, the child’s benefit is completely withdrawn.
At the present time, parents must pay these fees through self -evaluation, which requires them to complete the tax declaration every year demanding the child’s favor.
Latest developments:
Parents can now claim the child’s favor online, and HMRC has announced GiganticThe new digital service will allow parents working to report the child’s entitlement payments online.
They can then choose a HICBC discount automatically from their wages through Paye.
This removes the administrative burden of registration for self -evaluation only to pay the fees.
For many working parents, this will greatly simplify their tax affairs.
Automatic Paylip discounts will ensure that the fees will spread throughout the year instead of paying a lump sum.
HMRC expects this change to make the system more easy to use for occupied families.
Inheritance tax receipts achieved a record 7.5 billion pounds for the tax year 2023-24GiganticThe Ministry of Treasury confirmed the next change in a publication on X (previously Twitter), saying: “We are making it easier for families to pay the fees of high -income child entitlements (HICBC).”
The post continued: “From the summer of 2025, the parents of the working people will have the option to pay HICBC through Paye, and remove the need to register for self -evaluation.”
This change was detailed in a government document published after the spring statement of Chancellor Rachel Reeves last week.
The document has set the implementation schedule and confirmed the launch of the new digital service.
Parents who receive 60,000 pounds or less annually can claim all child allocations.
This applies if the child lives with them or if he contributes to the same weekly amount, as is the benefit of child care.
The father or the care provider can only demand the child’s favor, so husbands must decide what they receive.
The tax fees do not apply if the “average net income” of your partner or partner for the entire tax year decreases to less than 60,000 pounds.