High Child Benefit Charge - PAYE

Gengis

Morning - I pay the HCBC via self assessment but registered for paying this via PAYE yesterday.  Today the HMRC reduced by tax code from 666L TO 333l.  I think they have included the charge I need to pay for the current tax year - I thought I would not start paying this until April 26 i.e. spread it out over 12 months.  Can I ask the HMRC to do this so I pay what I currently owe up to April 26 then for the current tax year pay that over 12 months April 26 - Mar 27?  Otherwise I would be better going back to self assessment which is a pain.  thanks

Devongardener

It’s a taxable event in the current year so they will collect it now.  This means that you will be paying for the HCBC in the following years in which it is received, not in arrears. 

Dazed_and_C0nfused

Gengis said:

Morning - I pay the HCBC via self assessment but registered for paying this via PAYE yesterday.  Today the HMRC reduced by tax code from 666L TO 333l.  I think they have included the charge I need to pay for the current tax year - I thought I would not start paying this until April 26 i.e. spread it out over 12 months.  Can I ask the HMRC to do this so I pay what I currently owe up to April 26 then for the current tax year pay that over 12 months April 26 - Mar 27?  Otherwise I would be better going back to self assessment which is a pain.  thanks

I think you have completely misunderstood the purpose of the new service.

It is so you provisionally pay it during the year and then, instead of filing a tax return to finalise things once the year has ended, HMRC will include you in their annual reconciliation process to check if you have paid enough/too much tax and make any adjustment necessary.

Gengis

Ok thanks I phoned the HMRC and they advised the change in tax code will only result in a deduction from my net pay of around £94 until April 2026 and they will review it.

do you think i should go back to self assessment?  The HCBC is very confusing to me.

eskbanker

Why were you self-assessing and do you still meet the criteria?  Was PAYE collection of HICBC actually presented as an alternative to self-assessment, or just a mechanism to pay it in real time during the year rather than retrospectively?

Gengis

The only reason I was doing self-assessment was to pay the HICBC - I am an employee. I am just a bit worried about the new tax code and impact it will have until March next year.  I received an email from HMRC to change to this service but they did not warn me about the impact on pay this year - they admitted that when I spoke to them today.  I am just wondering what impact the new tax code will have on my net pay does a reduction in net pay of £94 sound right if so not too bad.

Still have to do a tax return for 2025 and that will be last one but any tax owed I should be able to pay from April 26.