Higher Income Child Benefit Payback

tanya1985

We were unaware of the higher income Child Benefit ruling so around 3 months ago we contacted HMRC after we received a letter and were set up on a plan to payback monthly via a direct debit (believe we are paying interest too!) 

Anyway, the new PAYE changes that came in in August 2025 - I’m just wondering whether it is better to contact them to pay via this form of deduction as opposed to how we are via the monthly direct debit. I’m assuming there will be some savings to be made, not only on interest but because it’s pre-tax…?

Anyone advise any more, point me in the right direction?

daveyjp

Unless the system has changed you have two options.

Stop claiming child benefit completely, useful if you know you will be above the threshold every year.  Or complete a self assessment tax return and pay back what is due.

This can be a one off payment, or depending on the submission date a tax code adjustment may be offered.  You won't pay interest as long as the self assessment is submitted on time.  You have months after the end of the tax year to submit it.

https://www.gov.uk/self-assessment-tax-returns/deadlines


  

Dazed_and_C0nfused

daveyjp said:

Unless the system has changed you have two options.

Stop claiming child benefit completely, useful if you know you will be above the threshold every year.  Or complete a self assessment tax return and pay back what is due.

This can be a one off payment, or depending on the submission date a tax code adjustment may be offered.  You won't pay interest as long as the self assessment is submitted on time.  You have months after the end of the tax year to submit it.

https://www.gov.uk/self-assessment-tax-returns/deadlines


  

There is a new service now which means you can avoid the need for a Self Assessment return.  It only applies though if HICBC was the only reason for needing a tax return.

There is a thread on one of the marriage/relationships boards about it. 

Not sure what the op means about paying by DD though, presumably they mean having completed a tax return they are paying what is owed from that return?