Childminders say Keep the 10% Wear & Tear Allowance

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

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.

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 nearly 14,000 signatures. Add your signature to the petition to help raise awareness of the campaign.

4. 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.