HMRC has confirmed that they will be proceeding with the implementation of Making Tax Digital (MTD) on a phased basis for childminders and also changing how ‘wear and tear’ can be claimed. Linked to this, yesterday, HMRC published its new guidance for childminders on expenses and record keeping.
You will already be aware that from 1 April 2026, if you have a qualifying income of £50,000 or more you will need to transfer to the Making Tax Digital system. The HMRC guidance confirms that once you move over to MTD, you will no longer be able to claim a blanket 10% for wear and tear and will instead be required to record and claim your actual expenditure on buying, repairing or replacing household items and furniture.
SCMA and other UK organisations working in the sector have provided considerable evidence reporting that the removal of the 10% wear and tear allowance could have a significant adverse impact on childminders by increasing the administrative burden on them and reducing income. Our concerns have been shared by childminders, the Scottish Government and numerous MPs who have also asked HMRC to pause implementation in childminding. Only last week SCMA wrote again to the Treasury calling for an urgent pause on implementation following receipt of a Freedom of Information response in which HMRC confirmed that they had not even carried out any impact assessments on the potential effect these changes could have on the childminding workforce.
Following a meeting this morning with senior officials from HMRC, the Treasury and other sector representatives, Graeme McAlister, Chief Executive of SCMA said:
“We are extremely disappointed that despite all the evidence we and others have put forward to HMRC about the significant adverse impact these changes could have, they are continuing to press ahead. While HMRC has now committed to reviewing the impact of the first year of implementation on childminders, we were not convinced or reassured by this intention and we continue to believe that proceeding with implementing these changes is reckless and ill-informed.
“The childminding workforce has been in decline for many years and although, through our recent recruitment and retention activity, we have begun to see an upturn in childminders joining the workforce, there’s a real danger that this could undermine the progress we have made. Our recent survey found this could cause over 50% of childminders to leave the workforce and take thousands of childminding spaces out of the system for families, worsening the acute shortage of childcare already being experienced in many communities across Scotland”.
“While only a small number of childminders will be affected in 2026/27, we want to reassure our members that our two main priorities will be to continue to support all those who need to make the switch to Making Tax Digital from 1 April 2026, as well as continuing to engage with HMRC and others, to inform the review, ensure it is conducted meaningfully, to gather further evidence and to seek a reversal of the change on wear and tear”.
Looking for help and support?
We would encourage any childminders who are moving to MTD in April to get in touch with us if they have any queries or concerns and you can also contact Advice Direct Scotland for specific queries about your individual circumstances.
For all other childminders with an income under £50,000, there are no changes for you currently and you can continue to claim 10% wear and tear, however we would encourage you to keep sending us your queries or concerns about the future change so that these can be collated as supporting evidence of the need for this to be withdrawn. HMRC has confirmed that this change will be subject to ongoing review in terms of how childminders adjust to the new system of recording actual costs for wear and tear, and to understand the impact this change has on the sector.
We will continue to review and update our MTD resources based on your needs. Please email your feedback and questions on MTD and wear and tear to
MTD@childminding.org