Today (18 March 2026) HMRC has updated its guidance for childminders around claiming expenses: BIM52751 – Care providers: childminders: expenses. This guidance has been revised to clarify how childminders under Making Tax Digital for Income Tax (MTD) must claim expenses, how childminders who work partly or fully from non-domestic premises should calculate expenses and to update the language and terminology. It also published new guidance: Claiming expenses and keeping records if you’re a childminder with details for childminders who use MTD and those who don’t.

Wear and tear allowance

The guidance confirms that the existing wear and tear allowance will no longer apply for childminders under MTD. Instead, childminders under MTD will be required to record and claim actual expenditure on buying, repairing or replacing household items or furniture.

HMRC told us today (18 March) “The government will actively engage with childminders and stakeholders to review the impacts of moving from the 10% deduction to actual costs for wear and tear expense claims.”

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 campaigning activity

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 about this here.

Our activity to date:

• Written twice to HMRC (most recently on 10 March) pushing for a delay in MTD until they can guarantee a better approach for childminders.
• Conducted a survey of 4,850 childminders to quantify the impact of the proposed changes to the wear and tear allowance.
• Collated childminder case studies to illustrate the real-world effects on their businesses and families they support.
• Produced template letters for childminders and parents to contact their local MPs, supporting our advocacy efforts.
• Promoted the online petition calling for the continuation of the wear and tear allowance for childminders under MTD.

Alongside our campaign on wear and tear, our resource page supports childminders with the wider changes that MTD will bring.