20/03/2026
Today (18 March 2026) HMRC has updated its guidance for childminders around claiming expenses under Making Tax Digital and says it will 'review the impacts' of changing the way childminders claim for wear and tear.
Ka Lai Brightley-Hodges, Head of Coram PACEY comments:
“Childminders have finally been issued updated guidance ahead of the 1 April start to MTD, but two weeks’ notice is not acceptable, no matter what lobbying and activity was happening in the background. The timeframe is too short for affected childminders to familiarise themselves with an entirely new process before it takes effect.
“Given the substantial evidence we have already provided to HMRC and the detailed outline of the impacts that removing the wear and tear allowance will have on the sector, it is hugely disappointing that they have decided to adopt a “wait and see” approach instead of implementing changes now. HMRC has also not confirmed when any such review will take place and what any impact threshold that will trigger a change looks like. By the time a review occurs, we may have already lost a significant number of childminders as a direct result of MTD changes – something we and the wider childminding sector have repeatedly warned about. 82% of childminders in our survey told us the change to the wear and tear allowance would leave them financially worse off, and 53% said they would leave the sector entirely as a direct result of the change to the wear and tear allowance.
“This loss is not just theoretical: families will lose vital childcare places, and once these providers leave the sector, it is virtually impossible to bring them back. HMRC should instead allow childminders under MTD to continue claiming the wear and tear allowance to prevent irreparable damage to both the workforce and the families who rely on them. If the Government cannot guarantee this, the rollout of MTD must be paused or delayed. They have made concessions for other self-employed individuals such as foster carers, so need to do the same for childminders now.”
Coram PACEY continues to push back on this issue, given the devastating impact the childminding sector in the UK has told us this change will cause. Read more: https://www.corampacey.org.uk/get-involved/campaigns-media/wear-and-tear-mtd
Read the update: https://www.corampacey.org.uk/update-from-hmrc-around-childminder-expenses-under-mtd/