Today (13 January), Coram PACEY coordinated and led a joint letter to HMRC, co-signed by organisations that support and represent childminders across the UK. Addressed to HMRC’s First Permanent Secretary and Chief Executive, John-Paul Marks, the letter calls on HMRC to reconsider its approach to childminder expenses under Making Tax Digital for Income Tax (MTD). In particular, we are urgently calling for the continuation of the 10% wear-and-tear allowance, which is no longer applicable for childminders reporting their income and expenses under MTD.

We have made it clear that replacing this allowance with a requirement to claim only for individual items, purchases and repairs places a substantial financial burden on registered childminders – leaving many childminders with no choice but to reduce staffing levels or leave the profession altogether.

While the change to the wear and tear allowance will begin for some childminders from April 2026 as they transition to Making Tax Digital, the phased rollout means it will ultimately affect all childminders. We have urged HMRC to consider the impact of this decision on the childminding profession and the families who rely on them and retain the wear and tear allowance for childminders under MTD.

Coram PACEY forwarded the letter to Secretary of State for Education, Bridget Phillipson for her support in addressing this urgent issue.

We recognise the significant worry this announcement has caused among the childminding community. Coram PACEY is meeting with HMRC and DfE on this issue and we will keep members informed of our progress.