The Money Saving Expert founder took to social media to share the news with his 3.2 million followers
Stephen Kinnock quizzed on his father’s two-child benefit cap comments
Martin Lewis has informed his 3.2 million followers on X that thousands of people could benefit from a new scheme being rolled out by HM Revenue and Customs (HMRC). He stated: “Child benefit: you may no longer need to do a self-assessment if you’re a higher earner.”
On his website, MoneySavingExpert, one of his expert team members explained why the new rule should assist many people and potentially save them time. They said: “If you get Child Benefit and earn over £60,000 a year, you may now be able to pay the high-income tax charge through your tax code thanks to a long-awaited new service.”
They added: “The change means 10,000s will no longer have to file self-assessment tax returns just to pay this charge.” They continued to explain that if you or your partner earns over a certain amount, currently £60,000 a year, you’ll need to start repaying the High Income Child Benefit Charge.
The repayment amount gradually increases as your earnings rise. Once you reach £80,000 a year, you’ll have to repay the entire benefit, reports the Manchester Evening News.
Before this new scheme was introduced, the only way people could settle the charge was by submitting a self-assessment tax return, even if they were employed and paying taxes through the pay-as-you-earn (PAYE) system. However, during last year’s Autumn Budget, the Government announced plans to simplify the process for employees to pay the charge, and this new option is now available.
Who’s eligible for the simplified Child Benefit charge payment method?
The team at MoneySavingExpert has broken down what claimants need to know. They explain: “You can access the new service if you’re employed and don’t need to file a self-assessment return for any other reason.”
However, they caution that this option is not available if you have to submit a self-assessment tax return for different reasons. If you are self-employed or have an income of £10,000 or more annually from savings or investments, you will still be required to file a self-assessment return as you normally would.
You can use the Government’s free tool to determine whether you need to put in a tax return. They further clarify that if you have a partner, the person with the highest income is responsible for paying the charge. Either you or your partner may need to take the steps outlined below.
In situations where you earn more but your partner is the one receiving Child Benefit, you will be required to provide their National Insurance number during the process. HMRC defines a ‘partner’ as someone you are married to, in a civil partnership with, or cohabiting as if you were, as long as you are not ‘permanently separated’.
How to choose to pay the Child Benefit charge via PAYE
If you meet the criteria, here’s how you can opt to have the charge collected via PAYE along with your regular income tax payments. For those facing the charge for the first time, they can opt in by utilising the online form available on Gov.uk. HMRC has stated that it will reach out to over 100,000 people who are newly liable for the charge, urging them to make use of the online service.
If you’ve previously paid the charge through self-assessment, then the charge is the sole reason you need to file tax returns. The MoneySavingExperts advise: “You can ring HMRC on 0300 200 3310 to switch to the new service (phone lines open Monday to Friday, 8am to 6pm). They add: “You have until 31 January 2026 to opt in for the latest 2024/25 tax year, which concluded on 5 April 2025.
“You’ll only need to do this once – you’ll then continue paying the charge through PAYE annually unless your circumstances alter (in which case you’ll need to get in touch with HMRC). Once you opt in, HMRC will modify your tax code, and the charge will be deducted from your salary as additional income tax.”
Registering for Child Benefit on a high income
If you and your partner earn £80,000 or more, it can still be advantageous to fill out the Child Benefit form and register for your entitlement – even if you end up having it reclaimed through taxes or choose not to receive the payments themselves. The team at MoneySavingExpert say registering has a couple of benefits, such as:
You will receive National Insurance (NI) credits that contribute towards your State Pension. To qualify for the full State Pension, most people need a minimum of 35 years’ worth of NI credits. This is particularly vital if one partner is not earning or earns less than £123 a week, as this is the threshold required to automatically receive NI credits.
The team of experts also say: “Your child will automatically be registered to receive a National Insurance number shortly before they turn 16. Otherwise they’ll need to apply for one manually, which can be slower.”
What is child benefit?
Child Benefit is a tax-exempt payment from the UK government intended for parents or guardians who are responsible for a child under the age of 16 (or under 20 if they are in approved education or training). This benefit aims to assist with the expenses associated with raising children, and you are eligible to claim it regardless of your income or savings.
However, if you or your partner earns more than £50,000 individually, a High Income Child Benefit Charge may be applicable. Claiming Child Benefit can safeguard your State Pension by offering National Insurance credits.
