For the first time in decades, the way childminders claim expenses is being rewritten. Some costs will increase under the new rules. Some will change direction. And the overall impact will be different for every setting.

These figures were created in a completely different economic world — long before the energy crisis, inflation spikes, council tax surges and rising water charges. The old NCMA percentages were designed for a time when household bills were stable, food costs were predictable, and utilities made up a much smaller share of a childminder’s overheads.

The new legislation finally moves away from those frozen percentages and replaces them with something more accurate: actual apportionment — a method that reflects how much of the home is genuinely used for childminding.

This is where some costs go up.

But it’s also where one long‑standing allowance — wear and tear — is being reviewed under the new rules. I’ll cover that separately once the full analysis is complete.

Household costs: the part that goes up

Under the new rules, household costs are based on:

• the number of rooms used
• the hours the home is used for work
• the number of days the home is used for the business
• the number of weeks worked per year

This produces a business‑use percentage that is then applied to the total annual bill.

Because household bills have risen sharply in recent years — and because the new rules finally recognise the full pattern of work in a childminding setting — the actual apportionment method often produces a significantly higher allowable amount than the old NCMA percentages.

Actual apportionment reflects the real number of weeks a childminder works each year. There is no fixed assumption.

Some childminders work around 48–50 weeks, and a smaller number work the full 52 weeks. Term‑time childminders may work 38 weeks or follow another pattern entirely.

The apportionment simply adjusts to reflect your own working year.

In the examples below, I’ve used:

• 48 weeks for a full‑time pattern
• 38 weeks for a term‑time pattern

These are illustrations — your own figures will adjust automatically if you work more or fewer weeks.

Full‑time example (48 weeks)

Old NCMA Method

(Using the real pattern of work under the new rules)

• Old NCMA Total: £1,875
• New Actual Apportionment: £4,947
• Difference: +£3,072

Term‑time example (38 weeks)

Old NCMA Method

(Calculated using the real pattern of term‑time work)

• Old NCMA Total: £1,407
• New Actual Apportionment: £3,929
• Difference: +£2,522

Food and the BIM guidance

HMRC has also updated its guidance on food costs in BIM52751. The manual now states:

“Cost incurred on food and drink for children being cared for is usually a business expense. Reasonable estimates for the costs of food and drink provided for the children being cared for are acceptable and receipts are not required.”

This means:

• Actual food costs (the method we already use) are fully allowable
• Reasonable estimates are allowed only before entering MTD

How this changes once you enter MTD

HMRC then adds:

“Childminders within MTD should follow the digital record keeping requirements of MTD and not use the alternative method set out above.”

So once you enter MTD:

• you must keep digital records of actual food costs
• you can no longer use reasonable estimates
• the old A4 list estimate approach is no longer acceptable

A clean, simple shift:

Before MTD → estimates allowed After MTD → actual costs only

Meal preparation counts as working time

HMRC also confirms that household apportionment is based on hours worked from the home, and that occasional trips out during childminding still count as working hours:

“Occasional visits and trips out when childminding should be included provided care is still fundamentally provided from the childminder’s own home.”

This means:

• Meal preparation done in your home counts as working time
• Trips out during childminding (including buying food with the children) still count
• Weekend grocery shopping does not count — the food is allowable, but the time is not

Fixed‑fee vs variable costs under MTD

As childminders move into MTD, one of the biggest questions is whether receipts are suddenly required for everything. The answer is no — but the rules do change.

Under MTD, costs fall into two simple categories:

1. Fixed‑fee, predictable costs (no receipts needed)

These include:

• toddler groups
• soft play
• music groups
• swimming sessions
• council‑run play sessions
• library rhyme time

These activities usually have:

• a fixed price
• a published fee
• a predictable pattern

For these, the fee itself is the evidence.

2. Variable costs (evidence required)

These include:

• food
• cleaning products
• craft supplies
• toys and resources
• consumables
• fuel (depending on method)

Because these vary, HMRC expects evidence of the actual amount — a receipt or a bank transaction.

A handwritten list or manual entry on its own is not enough for variable costs.

What this means for you

The new legislation finally brings household costs into line with how childminding actually works today. For many childminders, the move to actual apportionment will increase the amount they can claim for core household bills — because the calculation now reflects the full pattern of work in a modern childcare setting.

Wear and Tear is being reviewed separately, and I’ll cover that in its own blog once the full analysis is complete.