HMRC confirmed that childminders under Making Tax Digital (MTD) must use standard rules for self-employed people for expenses, instead of the existing agreement that sets out how childminders can claim expenses (known as BIM52751).  This means anything unique to the historic agreement – including the current blanket 10% wear-and-tear allowance – will not apply for childminders under MTD. They will instead need to claim only for actual repairs and purchases made.  

We know this announcement has caused significant concern across the childminding community and we are urging HMRC and Government to understand the unique nature of childminding and retain the wear and tear allowance for all childminders. Whilst we continue our conversations with HMRC and other wider Government departments, we’ve outlined what else we’re doing – and how you can help below.

Coram PACEY’s latest update (September 2026) 

Our latest survey of childminders under Making Tax Digital highlights the impact that MTD is having, with increased administrative burden and significant financial impacts:

• Around 75% say the removal of the wear and tear allowance has left them financially worse off.
• Only 24% are confident they have sufficient cash flow to cover the cost of repairing or replacing items damaged through wear and tear.
• 25% say they are planning to leave the childminding profession as a direct result of the removal of the allowance.
• 81% say the time spent recording and reporting income and expenses under MTD has increased compared with their previous method.
• 50% say using MTD has been harder than expected.
• 61% did not feel prepared for the transition to MTD.

These are the experiences of the first cohort to enter MTD, with thousands more childminders coming under the rules next April. Read our full press release.

Coram PACEY is calling for the reinstatement of the wear and tear allowance for childminders under MTD, and we have shared these findings with HMRC and the Department for Education and asked them what action they will take.

Write to your MP

We created template letters to make it easy for you raise this issue with your local MP, with optional space to explain how the changes affect you personally. We’ve also produced a template that parents can use to support childminders by contacting their MPs. 

MPs play a vital role in raising sector-specific concerns directly with Government – personal stories can make a real difference. Childminders writing to their MPs has already resulted in this issue being raised twice in Parliament by Edward Argar MP and Tessa Munt MP as well as several MPs tabling written questions to the Department for Education on behalf of childminders in their constituencies (videos open on Facebook). 

For members in Wales: As HMRC operates across the UK, we recommend writing to your Westminster MP. You may also wish to share your views with your local Member of the Senedd (MS) and you can also inform Welsh Government officials by emailing childcareandplaymailbox@gov.wales. 

Case studies: the impact of MTD on childminders

Coram PACEY has been speaking directly to childminders about the impact of MTD on their businesses and ability to continue supporting children and families.

Childminders under MTD: difficult business decisions and administrative burden

In September 2026, we spoke to childminders currently under the 2026/27 wave of Making Tax Digital (MTD) to tell us about how the removal of the 10% wear and tear allowance and the transition to MTD has impacted them and their businesses. For this case study, two childminders told us about the difficult business decisions they have been forced to make and how the administrative and financial burden of MTD has taken their time away from working directly with children.

Georgina’s story: preparing for the impact of MTD

In January 2026 we spoke to Georgina, a childminder in North Yorkshire who will come under the 2027/28 wave of MTD. In this case study, she explains how the removal of the 10% wear and tear allowance places her in an impossible position – being faced with either increasing her fees or absorbing the costs personally. She reflects on how this is more widely having an impact on morale in the sector and how the government should provide reassurance to childminders and make them feel valued and considered in policy decisions that affect them.

Previous activity

On 10 March 2026, we wrote directly to HMRC and the Government calling for the MTD rollout to be paused. Our concern was clear: childminders must not be financially disadvantaged by the removal of the blanket wear and tear allowance alongside these changes. Read the letter in full here.

Coram PACEY also led a joint letter to HMRC, signed by organisations representing and supporting childminders, calling for fair treatment of childminder expenses under MTD. 

In January 2026 we launched the findings of a survey of over 4,800 UK childminders which quantified the impact that the change to the wear and tear allowance under MTD will have on childminders. 

In response to MP’s Parliamentary Questions, previous Minister for Early Years, Olivia Bailey MP, recognised the widespread backlash against these changes across the childminding sector. She stated “we are aware of the strength of feeling amongst childminders and those who work with them. We have been talking regularly to Coram Pacey, HMRC and others to understand the issue, the effect that it is having on the childminding sector and to make sure that the concerns of childminders are clearly understood. The department emphasises its strong support for childminders, who continue to provide high quality and flexible early education, and do so in a way that families across the country greatly value.” 

We supported an official government petition calling on the government to retain the 10% wear and tear allowance for childminders. This reached over 10,000 signatures, meaning the Government had to respond.

Making Tax Digital support 

Alongside campaigning on wear and tear, we’re supporting childminders to prepare for the wider changes that Making Tax Digital will bring. Our MTD resource page explains:  

• When you’ll need to move to MTD  

• The phased rollout  

• Choosing digital software  

• Links to our HMRC webinar and further guidance  

Eligible Coram PACEY members also have access to a free, independent legal and HR advice line covering tax and business matters. Log in to your members’ portal to find out more.