Quick answer
Yes, MTD changes things for childminders. If you use MTD for Income Tax, you can’t use the 10% wear and tear rule or the fixed 33% and 10% household cost percentages. You claim actual amounts and a reasonable business share instead, and keep digital records rather than a cashbook.
Key facts
Childminding income counts towards the MTD threshold
Wear and tear: actual costs, not 10% of income
Household costs: a reasonable business share, not fixed percentages
Food: actual spend, not an estimate
Digital records replace the cashbook
When MTD applies
Start date | Qualifying income over | Based on your tax return for |
|---|---|---|
6 April 2026 | £50,000 | 2024/25 |
6 April 2027 | £30,000 | 2025/26 |
6 April 2028 | £20,000 | 2026/27 |
The threshold uses your total childminding income, including funded hours paid by the council, before expenses.
What changes under MTD
| Without MTD | With MTD |
|---|---|---|
Wear and tear | 10% of childminding income | Actual cost of buying, repairing or replacing items |
Household costs | 33% of running costs and 10% of fixed costs (40+ hours a week) | A business percentage worked out on a reasonable basis |
Food and drink | Estimated cost | Actual amount spent |
Records | Cashbook and attendance register | Digital records of income and expenses |
Working out household costs
HMRC says you need a reasonable method, for example the number of rooms used when caring for children, or the time spent caring in the home. Use the same method each year and write down how you worked it out.
Food
Keep receipts for food bought for the children you care for. If you shop for your family and the children together, a clear method for splitting the bill helps, such as separate baskets or a per-child cost.
Records
Record parent payments and funding as they arrive, and expenses as you pay them. A bank feed can help. See digital records for MTD.
Use the MTD checker to see your own start date.