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International Business Times UK
International Business Times UK
Business
Jim Manzon

HMRC's PAYE Child Benefit System Goes Live – Why Fluctuating Earners Face Overpayment Nightmare in 2025/26

HMRC United Kingdom
HMRC building in view: UK workers face overpayment issues with HMRC’s new PAYE system. (Credit: Photo credit: Pexels)

Thousands of UK workers with variable incomes are facing unexpected overpayment problems after HMRC launched its new PAYE system for repaying the High Income Child Benefit Charge (HICBC) in October 2025.

Designed to simplify tax processes for around 440,000 individuals liable for the charge, the digital service has instead created headaches for commission-based workers, bonus earners, and those with fluctuating salaries. The core issue: PAYE deductions are calculated based on estimated annual income rather than actual earnings.

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