Taxation

Childcare Sector Tax Returns with MTD

Tailored Support for Every Business Setup

Most small childcare businesses we work with are sole traders, requiring an online self‑assessment tax return. We prepare a basic set of accounts first, then complete and file the return on your behalf.

Making Tax Digital (MTD) — What It Means for You

Under MTD, childcare businesses must keep digital records and submit updates throughout the year. Instead of one annual return, reporting is now a structured cycle that we manage for you.

Our Step‑by‑Step Process

  1. Quarterly Updates

    • Every three months, we prepare and submit digital updates to HMRC.
    • These show income and expenses, keeping your records current.
    • You’ll receive a clear summary so you know exactly where you stand.

  2. End‑of‑Year Period Statement

    • At the end of the tax year, we reconcile your quarterly updates.
    • Adjustments for allowances, reliefs, and sector‑specific claims (wear and tear, household expense allocation, mileage log, capital allowances ) are applied.
    • This ensures accuracy before the final submission.

  3. The Final Tax Return

    • We prepare the full declaration, combining quarterly data with year‑end adjustments.
    • Importantly, this stage includes any additional income streams beyond childcare, such as:
      • Employment income (wages or salaries).
      • Property income (rental earnings).
      • Investment income (dividends, interest, capital gains).
      • Other self‑employment or freelance work.
    •  You sign off digitally, and we file directly with HMRC.
    • We also provide a payment schedule so you know exactly when tax is due, avoiding penalties.

Why Choose Us?

  • Decades of childcare sector expertise.
  • Clear, audit‑safe processes.
  • Reassuring communication every step of the way.
  • Confidence that your tax return is accurate, compliant, and maximises allowable claims.

Ready for MTD? For more details on our wider services, see our MTD page and let us take care of your quarterly updates, end‑of‑year statement, and final tax return — all seamlessly combined, with every income stream included.