Non-Resident Parents and the Child Benefit: What You Need to Know in 2025 

For UK expats and non-resident parents, receiving Child Benefit can be more complex than many expect. While the benefit is intended to support families, high-income households, whether resident or non-resident, may face reporting obligations, particularly under the High-Income Child Benefit Charge (HICBC). Understanding when and how to complete a Child Benefit Self Assessment Tax Return is essential to remain compliant and avoid penalties. 

High-Income Child Benefit Charge: Key Facts 

The HICBC applies if you or your partner receives Child Benefit and your adjusted net income exceeds £60,000. The charge is tapered at 1% of Child Benefit for every £200 of income above £60,000 and fully clawed back at £80,000 or more. 

Many parents previously needed to file a Self Assessment Tax Return to pay the HICBC. However, as of 2025, HMRC allows eligible taxpayers to pay the charge through their PAYE tax code, eliminating the requirement to file a Self Assessment return solely for HICBC purposes. 

See also: Setting Up a Smart Home on a Budget

Why Non-Resident Parents Still Need to Pay Attention 

Even with the new PAYE option, some non-resident parents or those with additional UK tax obligations may still need to file a Child Benefit Self Assessment Tax Return. This includes parents who: 

• Have UK rental income, self-employment income or substantial foreign income liable to UK tax 
• Choose not to use the PAYE HICBC service 
• Require precise calculations to optimize their tax position and avoid errors 

Non-resident parents must also account for exchange rate conversions when reporting foreign income and ensure HMRC can clearly identify UK and non-UK income for the charge calculation. 

Common Challenges 

Non-resident parents face unique challenges when dealing with Child Benefit reporting: 

• Determining UK vs. foreign income for Self Assessment purposes 
• Converting foreign earnings to pounds sterling in line with HMRC guidance 
• Aligning foreign tax years with UK tax periods 
• Understanding eligibility and timing for the High-Income Child Benefit Charge 

These complexities make expert guidance invaluable for avoiding penalties and ensuring accurate reporting. 

How Sterling & Wells Can Help 

Sterling & Wells specializes in guiding both resident and non-resident parents through every step of Child Benefit Self Assessment Tax Return requirements as Self Assessment Accountants. Their services include: 

• Reviewing global income to determine UK tax obligations 
• Calculating the High-Income Child Benefit Charge accurately 
• Filing Self Assessment returns when required 
• Advising on PAYE HICBC reporting options to simplify compliance 

With Sterling & Wells, parents gain peace of mind knowing that their Child Benefit reporting is accurate, compliant and strategically managed. 

Practical Tips for Non-Resident Parents 

• Keep accurate records: Maintain a clear record of all income, benefits and foreign tax documents. 
• Plan ahead: Begin preparing your Self Assessment early to allow time for currency conversions and documentation. 
• Consult experts: Engage a UK tax specialist like Sterling & Wells to ensure correct reporting and to explore whether the PAYE option is suitable. 

Conclusion 

Receiving Child Benefit as a non-resident parent no longer automatically requires filing a Self Assessment solely for the High-Income Child Benefit Charge. However, many parents still need to file due to other income sources or for accuracy and strategic tax planning. 

Partnering with Sterling & Wells ensures that non-resident parents remain compliant, understand their reporting options, and take advantage of the most efficient method to manage Child Benefit obligations in 2025.