FOI answer confirms vital impact assessments on childminding workforce have not been conducted.
The Scottish Childminding Association (SCMA) is today calling on HMRC to immediately delay the implementation of Making Tax Digital (and intended changes to the long-established ‘wear and tear’ allowance) for childminders due to be implemented on a phased basis from next month, as it is believed this could significantly increase the administrative burden on and reduce the income of childminders - resulting in the potential loss of thousands of childminding spaces for families in Scotland.
SCMA’s call follows a response to Freedom of Information (FOI) questions submitted by SCMA to HMRC which has confirmed that impact assessments which would have been vital to understanding the effect of these tax changes on the childminding workforce and childcare provision throughout Scotland and the UK have not been conducted.
The written confirmation from HMRC was received in response to Freedom of Information questions submitted to HMRC by SCMA last month (12 February 2026) in which SCMA had requested the release and sharing of any impact assessments conducted by HMRC (or consultants appointed by them) on the impact of the implementation of Making Tax Digital on childminders and also correspondence regarding the decision to change the ‘wear and tear’ allowance for childminders.
While declining to release any of the information requested by SCMA, on the grounds of cost,
HMRC has confirmed in their response that “
There is no record of any specific assessment on the impact of implementing the Making Tax Digital policy on the childminding sector.”
Graeme McAlister, Chief Executive, SCMA, said:
“
It is disappointing, in the interests of transparency and public accountability, that HMRC has chosen not to release the documents requested by SCMA in our FOI requests. However, the response from HMRC has confirmed what we and others suspected – that vital impact assessments have not been conducted by HMRC on the potential effect of the implementation of Making Tax Digital on the childminding workforce. Given that the childminding workforce is still recovering from the dual impact of the pandemic and Cost of Living crisis and that other parts of government throughout Scotland, at national and local levels, are working on a joined-up basis to support childminder recruitment and retention, it is shocking that HMRC is acting in isolation and without having undertaken the necessary impact assessments or knowledge or understanding of the sector. To proceed with implementation would be reckless and ill-informed.
“We call on HMRC to delay implementation of Making Tax Digital and the changes to the wear and tear allowance for childminding with immediate effect.
“HMRC has listened to the cases presented by farming and, more recently, foster parents and delayed implementation of Making Tax Digital for these groups. We believe these precedents must now be extended to childminding. We would also continue to encourage parliamentarians and elected representatives in the Scottish Parliament, Westminster and devolved Assemblies in Northern Ireland and Wales to provide political scrutiny of how this policy is being implemented.”
SCMA’s call is the latest development in recent months which has seen:
- SCMA and childminding organisations in other parts of the UK write to the Treasury directly urging a pause on implementation due to concerns regarding the significant adverse effect this could have on the childminding workforce and joined-up policy activity to support childminder recruitment and retention. This also followed meetings between HMRC and SCMA in which it was confirmed that there had been no consultation by HMRC on these changes in Scotland and other devolved areas;
- The Scottish Government supporting SCMA and childminders’ concerns and also writing directly at Cabinet and Ministerial level to the Treasury requesting a delay in implementation;
- The publication of a four nations survey of childminders which found that implementation of Making Tax Digital and changes to the ‘wear and tear’ allowance in Scotland could result in 1 in 2 childminders (52%) leaving the workforce; 1 in 3 childminders (32%) reducing their business model and number of childminding spaces for families; and 1 in 4 childminders (23%) withdrawing spaces agreed with families - taking thousands of childminding spaces for families out of the system and worsening the acute shortage of childcare already being experienced in many communities;
- Increasing concern from and Parliamentary Questions asked by MPs in Scotland; and
- HMRC agreeing within the last few weeks to delay the implementation of Making Tax Digital for foster parents until March 2027 due to concerns about an increase in administration and cost.
Further Information and Background