Traditionally, childminders have had the option of following the rules that normally apply (the standard approach) or the alternative approaches set out by HMRC at BIM52751 for claiming tax relief and keeping records for some business expenses. This followed an agreement reached between what was then the Inland Revenue and the National Childminding Association (now the Professional Association for Childcare and Early Years) in 1986. 

However, on 18 March 2026, HMRC updated BIM52751 to clarify that: 

• taxpayers who are within MTD income tax must follow the standard approach in calculating their taxable profits from childminding. This applies from the date that they first come within MTD income tax; and
• the alternative approaches for household expenditure and for the wear and tear of household furniture (see below) apply only to that proportion of the childminder’s income and expenditure which relates to the provision of services from their home, and not, for example, from non-domestic premises. This follows an announcement made by the Department for Education in November 2024 that created a new category of childminder without domestic premises.  

The standard and alternative approaches are summarised below.  

Household expenditure 

• Standard approach: The taxpayer may claim either a flat rate deduction based on the total hours worked (BIM75010) or a proportion of the actual expenses incurred using any reasonable method of apportionment (BIM47815). 
• Alternative approach: Amounts equal to a fixed percentage of the childminder’s household running and household fixed costs may be deducted in calculating their taxable profits. The relevant percentages are determined by the number of hours worked and are given in BIM52751.  

Wear and tear of furniture 

• Standard approach: The costs of buying and replacing items of furniture may be an allowable deduction under the cash basis (BIM72025), or attract relief through capital allowances under the accruals basis, depending on the circumstances. An adjustment may be required for non-business use where appropriate.   
• Alternative approach: An amount equal to 10% of total childminding income may be deducted in calculating taxable profits to cover the wear and tear of furniture and household items. 

Records and receipts 

• Standard approach: Taxpayers must follow the statutory requirements regarding keeping records (SALF211) and, for taxpayers within MTD income tax, digital record-keeping requirements.
• Alternative approach: HMRC will accept reasonable estimates of the costs of food and drink and does not require receipts to be kept. Further, childminders are not required to keep receipts for individual items costing less than £10.