HMRC has confirmed that the current 10% Wear & Tear Allowance will not continue once childminders move onto Making Tax Digital (MTD) for Income Tax. The sector is now waiting for the Government to publish the final detail on the replacement rules. This may come before April 2026, and possibly in the March 2026 Budget, but the timing has not yet been confirmed.
Several national childminding organisations and professional bodies are actively lobbying the Government to retain the allowance or introduce a fair transitional arrangement. These discussions are ongoing. While the outcome is uncertain, the sector is united in pushing for a solution that protects childminders’ income.
The direction of travel remains clear: childminders are expected to move to claiming actual costs for household items used in the business. What we don’t yet know is the exact structure, timings, and transitional rules.
If you will be moving onto MTD from April 2026, it may be worth delaying large household purchases until after that date where possible. Items such as furniture, carpets, fridges, sofas and similar domestic goods may be more beneficial under the expected actual‑cost rules if bought once they apply. This is not guaranteed, but delaying purchases could help you benefit if the rules allow full or partial cost claims.
Once the Government confirms the final position, we will publish a full breakdown of the financial impact for different types of childminding settings, including example calculations and planning guidance.
For more guidance on MTD for childminders, see our Making Tax Digital information page.