HMRC recently 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. 

Evidence and impact

Our latest survey of over 4,800 UK childminders quantifies the impact that the change to the wear and tear allowance under MTD will have on childminders. It finds that:

• 82 per cent of respondents said this change would leave them financially worse off (70 per cent significantly so).   
• Only 4 per cent of respondents are confident they have sufficient cash flow to cover the cost of repairing or replacing items damaged through wear and tear.  
• 96 per cent said the new process would increase administrative burden on childminders. 
• 93 per cent support a delay in introducing changes to the way they claim for wear and tear, while stakeholders work with HMRC to improve support for childminders.   

Write to your MP

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

We’ve also created a template letter 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). 

In response to MP’s recent Parliamentary Questions, Minister for Early Years, Olivia Bailey MP, has recognised the widespread backlash against these changes across the childminding sector. She stated that “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.” 

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. 

Online petition

An official government petition calls on the government to retain the 10% wear and tear allowance for childminders. This has reached over 10,000 signatures, meaning the Government must respond. At 100k responses, the petition will be considered for debate in Parliament.

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.