AccountancyKids

33.3% and 10% were sliding rates with a fixed maximum — built on a pattern of work childminders have never followed.
Our blog explainer drops this week, and the early household results are far better than many expect.

Important Update on Wear & Tear & Household Costs

HMRC have updated their guidance (BIM52751) on how household wear and tear can be claimed. Unfortunately, the traditional 10% wear‑and‑tear allowance will no longer be available once you move onto Making Tax Digital.

There has also been a change in how you apportion and claim household utilities. I’ll be publishing simple guidance on my website www.accountancykids.co.uk
shortly to explain how we’ll work out the new apportionments.

These updates mean you’ll see more fixed assets, more depreciation, and more capital allowances in your accounts. This is completely normal under the new rules.

MTD 2026 for Childminders | Accountancy Kids – ACCA Qualified Support MTD 2026 for childminders—Accountancy Kids helps shape SCMA guidance. Trusted, sector-specific support for Making Tax Digital compliance.

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.

Update: HMRC Meeting With Childminding Sector – w/e 16 January 2026
Coram PACEY have confirmed they are meeting with HMRC this week to discuss the future of the 10% wear‑and‑tear allowance for childminders.

HMRC’s position currently remains the same:
The allowance will end once childminders move into MTD for ITSA, with actual‑cost rules applying instead.

Sector organisations are pushing for clearer, practical guidance on what childminders can claim and how household costs should be proportioned under MTD.

Further updates will follow once the meeting concludes.