26/02/2026
Important Update for Childminders: Wear & Tear Allowance
HMRC has confirmed that the 10% Wear & Tear Allowance will not continue once childminders move onto Making Tax Digital (MTD), currently planned for April 2026.
We know this change feels uncertain, and we want to reassure you that the sector is actively lobbying for a fair approach. National childminding bodies and professional associations are pushing for the allowance to be retained or for a transitional arrangement. These discussions are ongoing.
What we do know is that childminders are expected to move to claiming actual costs for household items used in the business. The exact rules, timings, and transitional arrangements have not yet been confirmed.
If you expect to move onto MTD from April 2026, it may be worth delaying large household purchases (such as furniture, carpets, fridges, sofas and similar items) until the new rules are confirmed.
This may benefit you under the expected actual‑cost system — but nothing is guaranteed yet.
As soon as the Government publishes the final rules, AccountancyKids will share a clear, simple breakdown with examples so you can see exactly what the change means for your setting.