HM Revenue and Customs (HMRC) has confirmed a tax change for £117.22 monthly Child Benefit payments that will take effect from July 2026. The change is designed to make it easier for high-income households to complete their tax returns accurately.
Pre-populated Tax Charge for Self Assessment
From mid-July 2026, around 300,000 Self Assessment customers will have their or their partner’s Child Benefit payment information pre-populated on their online tax return. This move aims to reduce errors and simplify the process for those liable for the High Income Child Benefit Charge (HICBC).
Following a 3.8% uplift on April 6, 2026, Child Benefit is now worth £27.05 per week for the eldest or only child and £17.90 per week for every additional child. Parents with one child can receive £1,406.60 annually, amounting to approximately £117.22 per month.
High Income Child Benefit Charge Thresholds
If you or your partner earn more than £60,000 per year, you are subject to the HICBC. The charge is calculated at a rate of 1% for every £200 earned above the £60,000 threshold. If annual income reaches £80,000 or more, the full Child Benefit amount must be repaid to HMRC.
Claimants can choose to continue receiving Child Benefit and pay the tax charge, or opt out of payments and avoid the charge. Opting out still provides National Insurance credits towards the State Pension and a National Insurance number for the child without needing to apply before age 16.
Payment Options and Deadlines
Those who opt to pay the tax charge can do so through their PAYE tax code or via Self Assessment. HMRC warns that the second payments on account deadline for Self Assessment taxpayers is July 31, 2026. Payments on account are half of the tax owed from the 2025 to 2026 tax year, due by midnight on January 31 and July 31.
HMRC stated: “Payments on account instalments can be paid before a customer has filed their Self Assessment tax return. The deadline for submitting tax returns and paying any remaining tax owed for the 2025 to 2026 tax year is 31 January 2027. Filing early means that customers know how much tax they owe sooner.”
Impact on Households
The pre-population of Child Benefit information is expected to benefit around 300,000 households, making the process faster and more accurate. HMRC emphasized that those who need to file a Self Assessment return for other reasons, such as self-employment or savings interest, must pay the HICBC through Self Assessment if they are liable.
If the tax charge is not paid by January 31 in the year after the tax year, the charge must be paid through Self Assessment. The change is part of broader efforts to streamline tax filing and reduce administrative burdens for families.
