Childminders say Keep the 10% Wear & Tear Allowance

Childminders have told us they want to keep the 10% wear and tear allowance. Here's what you can do to help.

In the November 2025 budget, the government announced plans to scrap the 10% wear and tear allowance for childminders forced to use Making Tax Digital (MTD).

The wear and tear allowance has been part of a historic childminder agreement known as BIM52751 which dates back as early as 1986.

Although HMRC have announced alternative ways for childminders to claim for expenses, using standard self-employed expenses guidance, the majority of our childminders members have told us that they would prefer to keep the wear and tear allowance.

Childminders say that removing the wear and tear allowance will cause them financial hardship in any already very challenging economic environment.

This is likely to lead to a further decline in childminder numbers, which have been declining year-on-year for over a decade. It is also likely to discourage new potential childminders from entering the childcare industry, at a time when there is increased demand from parents due to the government's so called free childcare for working parents.

For those childminders who do not meet the income threshold to use Making Tax Digital, they will still be able to continue to use the allowances, including the 10% wear and tear allowance, detailed in the historic agreement.

This is unfair and will create a two-tier system, where some childminders will be able to claim the wear and tear allowance and others will not. This is unacceptable and is discriminatory.

Childcare.co.uk have had been in discussion with HMRC about the changes and have provided an update after our meeting with HMRC.

HMRC say the plans to scrap the wear and tear allowance has come from higher up the government in the Treasury and that all they can do is provide guidance on alternative ways for childminders to claim expenses. They say they do not have any control or authority to change the decision to remove the wear and tear allowance.

Whilst HMRC have been very helpful in their discussions, their arms are tied and they have said legislation is being introduced by the Treasury to force the changes through.

What can be done?

Only a change of heart by the Treasury or senior government ministers will get the decision to remove the wear and tear allowance overturned.

Here are some of things you can do if you do not want to see the wear and tear allowance scrapped:

1. Write to the Chief Secretary to the Treasury

The Chief Secretary to the Treasury is ultimately the person in charge. In fact, their page on the government website says that childcare is a 'specific area of focus' for them.

The Chief Secretary to the Treasury is currently James Murray MP.

You can email James Murray MP at james.murray.mp@parliament.uk

Read our letter to James Murray MP - Chief Secretary to the Treasury

2. Write to your own MP

Your local MP is there to represent your interests in UK parliament. They have direct access to question and make representations to the wider government on their constituents' behalf. You can find the email address of your MP to contact them.

We have created a sample letter that you can modify and email to your own MP.

3. Sign a petition

A petition has been started by a Basingstoke based childminder, which among other things calls for a 'halt on the wear and tear allowance'. The petition has been featured in a BBC news article and the petition currently has over 18,000 signatures. Add your signature to the petition to help raise awareness of the campaign.

Update 27th January 2026: A new .gov.uk petition is now live. The petition currently has over 16,000 signatures and so has exceeded the 10,000 signature threshold required to receive a government response. At 100,000 signatures, the petition will be considered for debate in Parliament. Add your signature to the petition

4. Write to the First Permanent Secretary and Chief Executive of HMRC

Although, HMRC have told us that the decision to remove the wear and tear allowance has come from the Treasury and that HMRC do not have any powers to change it, it is still worth writing to John-Paul Marks CB, Chief Executive of HMRC. They will have a direct communication channel to the top of the Treasury.

You can email John-Paul Marks CB at john-paul.marks@hmrc.gov.uk

Read our letter to John-Paul Marks CB - Chief Executive of HMRC.

5. Write to Martin Lewis

Money Saving Expert, Martin Lewis, is a consumer champion and has had much success in bringing the government to account on financial and tax matters. His TV show, The Martin Lewis Money Show, is the one of UK's most watched TV programmes. You can email Martin at martinlewis@itv.com or message Martin on facebook.

What else are Childcare.co.uk doing?

We have made our own representations to those who may be able to help influence the Treasury's decision and have a continuing dialogue with HMRC and the wider government. We will continue to update our members with any new information.

There is power in numbers, so if every childminder who doesn't want to lose the wear and tear allowance can also do all the above, it will really help get the message across to the decision makers in the Treasury.