Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will reconsider the decision to withdraw the childminder tax agreement BIM 52751.

Childminders play a vital role in childcare. 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.

At Budget 2025 the Government confirmed that the standard rules for calculating income tax would apply to childminders who are mandated into Making Tax Digital (MTD). We will phase in this change between 2026 and 2028, in line with the MTD income thresholds. The threshold from April 2026 is £50,000 of qualifying income, reducing to £30,000 from April 2027 and £20,000 from April 2028.

HMRC’s Business Income manual page BIM52751 is not being withdrawn. A revised version will be published in early 2026 to reflect the Government’s confirmation at Budget 2025 that the standard rules for calculating income tax will apply to childminders within Making Tax Digital for Income Tax. The guidance will also be clarified for childminders that work from non-domestic premises.

Childminders can continue to claim tax relief for wear and tear by deducting the actual cost of buying, repairing or replacing items. They can also deduct the cost of business expenses such as utilities, cleaning and equipment. This ensures childminders receive tax relief for all of the costs that they incur in relation to their childminding business.