MTD and the Platform Gap: What Childcare Providers Need to Know

As Making Tax Digital (MTD) continues its phased rollout, many childcare providers are asking:

“Can I just use the platform I already have?”

It’s a fair question—especially when you’re already using platforms like Tiney, Kinderly, or Parenta to manage your day-to-day operations. These platforms are brilliant at what they do: supporting childcare delivery, parent communication, and fee tracking.

But when it comes to statutory compliance under Making Tax Digital, these platforms don’t yet meet HMRC’s recognised standards.

What These Platforms Do

Most sector platforms:

  • Offer sales invoicing or fee tracking
  • Allow CSV export of income data
  • Provide basic expense logging
  • Focus on operational support, rota planning and child records

What These Platforms Don’t Currently Support

As of publication, Tiney, Kinderly and Parenta are not listed by HMRC as recognised MTD software providers for Income Tax, and do not publicly confirm integration with bridging tools or direct submission capability. “You can view HMRC’s official list of compatible MTD software providers”

This means:

  • No quarterly update submission
  • No digital ledger
  • No categorised expense tracking suitable for MTD
  • No final declaration support

While Abacus supports MTD for VAT, it is not currently listed by HMRC as a recognised software provider for MTD for Income Tax. There is no public confirmation of integration with bridging tools or direct submission capability for quarterly updates. Its core focus remains on nursery management and financial reporting—not statutory tax compliance for sole traders or childminders.

We’ll update our guidance if their compatibility status changes.

Can CSV + Bridging Tools Fill the Gap (and Should You?)

In theory, yes. But in practice, it’s a workaround—one that introduces complexity, risk, and extra admin every quarter.

Here’s how that workaround unfolds in practice.

 Step-by-Step: Using a childcare platform with Bridging Software

Step Task Time Estimate
1 Export sales data from childcare platform 5–10 minutes
2 Manually track expenses elsewhere (e.g. Excel) Ongoing
3 Reformat both income and expense data into a structured CSV 20–40 minutes per quarter
4 Upload to bridging software and submit to HMRC 5–10 minutes
Even well-formatted CSVs can fail HMRC’s validation checks if fields are misaligned or incomplete—especially for expense categories.

Total time per quarter: 30–60 minutes, assuming no errors or rework.

And that’s every quarter, for every provider.

Why QuickBooks Is the Sector-Safe Choice

At Accountancy Kids, we use and recommend QuickBooks as our preferred MTD solution. It’s HMRC-recognised, built for small businesses, and aligned with the realities of childcare accounting.

QuickBooks handles:

  •  Digital record keeping
  •  Categorised expense tracking
  • Quarterly update submissions
  • Final declaration support

No bridging software. No platform gaps. Just one connected system that meets HMRC’s requirements for MTD for Income Tax—and supports the audit clarity our sector demands.

  • For most providers, this means:
  • Less admin
  • Fewer errors
  • Full compliance without the extra step

Need Help Navigating MTD?

Accountancy Kids is a UK sector-specialist accountancy service for childcare providers—trusted by childminders, nurseries and out of school clubs.

We don’t just “do the books.” We:

  • Translate MTD rules into clear, actionable steps
  • Build audit-defensible workflows tailored to childcare realities
  • Offer fallback messaging and escalation support when platforms fall short

Whether you’re using Tiney, Parenta, or just Excel—we help clarify what your platform can and can’t do, and guide you toward compliant, sector-safe solutions.

Let’s make MTD manageable—so you can spend less time worrying about tax and more time doing what you do best.

Ready to simplify your MTD journey? Please read more on our dedicated MTD page https://www.accountancykids.co.uk/making-tax-digital/

Email us at: info@accountancykids.co.uk

Call us on 01698 421774

https://www.accountancykids.co.uk/contact/