Important SCMA Update | HMRC, Making Tax Digital and ‘Wear and Tear’: How YOU can influence this

SCMA met with HMRC late last week to discuss the above and, in particular, members’ increasing concerns about unexpected changes to childminders’ established tax-free allowance for ‘wear and tear’. 

The meeting was helpful, as it provided SCMA with an opportunity to ask detailed questions of HMRC officials, to understand where this had come from, and to explain the adverse impact this could have on childminders (and children and families relying on their services). The additional detail shared has caused us to have a number of significant concerns about this development and how it has been handled.

Speaking after the meeting, Graeme McAlister, Chief Executive, SCMA, said:

“We were left with a sense that this intended taxation change for childminders in Scotland is largely being driven by a policy development in England and Wales which has no legal or regulatory standing in Scotland, without adequate consultation, is ill-informed, rushed, risks increasing the administrative and financial burden on childminders and undermining ongoing joined-up national and local activity to increase childminder retention and recruitment. 

“We believe this must be urgently paused and the 10% of income tax-free element/allowance for ‘wear and tear’ retained for all childminders.”

Check your Email Inbox and Help Us Influence

Today (Monday 19 January) we are sending an email to all SCMA members including more detail about what was shared in this meeting and our concerns, what we will continue to do and how you can have your voice heard and influence this.

Please take time to read our email and download the template email that we have produced and send to your MP (and your MSP and HMRC if you are able). We’ve provided handy links to help you do this, and you will be helping by engaging on this important subject. 

SCMA will continue to host our webinar on Wednesday, focussing on Making Tax Digital, to support and minimise the impact on members - and we will be escalating our concerns about 'wear and tear' separately.