Confusion over alleged removal of '10% wear and tear' allowance for registered childminders

Over the last week, there has been a huge amount of speculation in the childminding world, that a long standing agreement between HMRC and all registered childminders, known as BIM52751 - Care providers: childminders: expenses may be disbanded as a result of the introduction of Making Tax Digital (MTD) for childminders.

BIM52751 was first introduced in 2013 and set-out a number of expenses that childminders can offset against their childminding income. One significant part of the agreement is in relation to 'Wear and tear of household furnishings' and allows childminders to deduct 10% from their income to cover the wear and tear of furniture and household items. This is intended to cover items in a childminder's home that are not used exclusively for their business - such as a sofa that may be used during the course of their work, but also for use by the childminder's family out of working hours.

The wear and tear allowance has been a fundamental part of a childminder's sustainability, which otherwise could mean that the economics of running a childminding business may be less viable.

Over 12 years later, BIM52751 is still in place and was recently updated on 5th December 2025 with very minor changes that do not make changes to any of the permitted allowances.

During a webinar about Making Tax Digital on 11th December 2025, broadcast by a smaller childminding organisation, a HMRC employee, Lenny Barry, was a guest during a Q&A. Lenny stated that "wear and tear would not be applicable in Making Tax Digital".

Lenny further went on to describe how childminders would, with MTD, instead use self-assessment, instead of "the agreement".

Childminders have always used self-assessment to submit their tax information to HMRC, in the form of their annual tax returns, with the permissible allowances as part of BIM52751 being used to reduce their net tax position.

Childcare.co.uk has been in contact with HMRC to address childminders' concerns about the alleged removal of BIM52751 and have been informed by HMRC that they are not aware of such changes being introduced for childminders as part of MTD.

Despite widespread concerns and confusion, we are not aware of any official announcement from HMRC that the 10% wear and tear allowance is being removed. The HMRC website, still clearly shows that BIM52751 is operational for childminders and does not detail any future changes at this time.

We will continue to speak with our contacts at HMRC and in wider government about how childminders may be impacted by MTD and other HMRC and government changes and would urge childminders not to panic or rely upon third party, unsubstantiated hearsay.

We are assured by HMRC that any changes that may affect childminders will be announced directly by HMRC and not by non-governmental organisations or charities.

Childminders may also Contact HMRC directly with any questions or seek advice from their own accountants.

Childcare.co.uk remain open 365 days a year, including everyday over the festive period, to help and support childminders.