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Written question asked by Mohammad Yasin (Labour) on Friday, 20 February 2026, in the House of Commons. It was due for an answer on Tuesday, 24 February 2026. It was answered by Dan Tomlinson (Labour) on Monday, 2 March 2026 on behalf of the Treasury.

Childminding: Income Tax

Question

To ask the Chancellor of the Exchequer, what assessment has HM Treasury made of the potential impact of Making Tax Digital for Income Tax on self-employed childminders and other home-based childcare providers.

Answer

Childminders make a significant contribution to children’s development, learning, and wellbeing. The Government has eased rules on working from schools and community centres and increased early years funding rates above 2023 average fees. These increases reflect increased costs, and from April 2026, local authorities must pass at least 97 per cent of funding to providers.

Only a small proportion of childminders with qualifying income over £50,000 will be mandated into Making Tax Digital (MTD) for income tax from April 2026. Childminders moving to MTD for income tax can continue to claim tax relief for household costs, wear and tear of household items and furniture, and food and drink, by deducting actual business costs. This ensures childminders receive tax relief for all of the costs that they incur in relation to their childminding business.

The Government will monitor the impact of MTD for income tax on childminders and other home-based childcare providers in the same way as it will for all sole traders moving to MTD for income tax.

Secondary information

Type
Written question
Reference
113681
Session
2024-26
Subjects
Childminding Digital technology Income tax
Link
View this Written question on www.parliament.uk