The HMRC home-cost arrangement
We apply the agreed hours-based method for claiming a proportion of your heating, lighting and household costs, the relief most generalist accountants miss entirely.
Who we helpIndustry guide
The accountant for childminders who knows the rules.
The HMRC home-cost agreement, food and toys, Ofsted fees and your tax return, handled by a childminder accountant who actually knows your trade, on one fixed monthly fee.
You care for children, not spreadsheets. As a specialist accountant for childminders, we know your tax works differently from any other self-employed business. Childminding has its own HMRC arrangement for claiming a share of your home costs based on the hours you work, food you can claim without keeping every receipt, and a long list of childminder-only costs that a high-street accountant simply does not know to look for. Get it wrong and you quietly overpay HMRC year after year. Book a call with a childminder accountant who gets it, on one fixed monthly fee.
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- ACCA-qualified
- 30-day money-back
The problem
Why a Generic Accountant Costs Childminders Money
Most accountants treat a childminder like any other small business. They file last year and miss the reliefs that are specific to you.
They do not know the HMRC home-cost arrangement, so they leave it unclaimed. They ask for receipts for the children’s food you were never expected to keep. They miss the Ofsted fee, the first-aid course and the toys. So you overpay, and you never quite know why.
A specialist accountant for childminders works the other way round. We know the trade, so we know where your money leaks. We do not just record your numbers, we make sure HMRC only takes what it is actually owed.
Tailored services
What We Handle, So You Can Focus on the Children
01 02 Childminder expenses, claimed in full
Food for the children, toys and craft supplies, safety equipment, outings and mileage, Ofsted, DBS and first-aid fees, and public liability insurance.
03 Funding and Tax-Free Childcare
We record funded-hours payments and Tax-Free Childcare top-ups correctly as trading income, so your accounts reconcile cleanly.
04 Simple record-keeping that suits you
A light-touch system for logging income and costs, set up so you spend minutes on admin, not evenings, and stay ready for any HMRC check.
05 Self Assessment and your tax bill
Your tax return filed on time, with the bill flagged months early. We also advise whether the trading allowance or claiming actual expenses leaves you better off.
06 Making Tax Digital, made painless
We get your records MTD-ready in advance and handle the quarterly digital updates as the rules phase in, so nothing catches you out.
Use of home
How Does the Childminder Use-of-Home Claim Work?
This is the big one general accountants get wrong. Because you mind children in your own home, HMRC lets childminders use a special arrangement, agreed with the childminding bodies, to claim a share of your household costs.
Instead of working out the business proportion of every bill, you claim a set share of your home running costs (such as heating, lighting and water) and your fixed costs (such as council tax and rent or mortgage interest), scaled to the hours you actually childmind each week. The more hours you mind, the larger the share.
On top of that, there is a separate wear-and-tear allowance to cover the furniture and household items the children use, claimed as a percentage of your childminding income, with no receipts needed.
We apply the right figures for your real hours every year. If your hours change, your claim changes, and we keep it accurate so you are never leaving relief on the table or over-claiming.
We also handle your Self Assessment return and your bookkeeping, so the home-cost claim flows straight into a return that is right first time.
The numbers, at a glance
What a childminder can claim
The HMRC childminder agreement lets you claim a fixed share of your home running and fixed costs based on the hours you childmind, no need to itemise every household bill.
- Wear & tear: 10% of your childminding income, no receipts needed
- Food & drink for the children: actual cost or a reasonable estimate
- Mileage: 55p per mile for the first 10,000 business miles (from April 2026)
- Ofsted, DBS, paediatric first-aid, toys, safety equipment & public liability insurance
| Hours you childmind | Home running costs | Home fixed costs |
|---|---|---|
| 40+ hours a week | 33% | 10% |
| 30 hours a week | 25% | 8% |
| 20 hours a week | 17% | 5% |
| 10 hours a week | 9% | 3% |
Heads up, Inside Making Tax Digital (qualifying income over £50,000 from 6 April 2026) these flat percentages no longer apply, you move to claiming actual costs. We handle the switch so you keep your relief.
Allowable expenses
What Can Childminders Actually Claim?
Far more than most childminders realise. Good accounting for childminders starts with claiming every penny you are owed, and your job comes with a long list of costs a generic accountant would never think to ask about.
- Food and drink provided to the children
- Toys, books, games and craft materials
- Safety equipment, stair gates and outdoor play kit
- Your Ofsted registration and inspection fees
- DBS checks and paediatric first-aid training
- Public liability and contents insurance for your setting
- Mileage for the school run, nursery drop-offs and outings
- Childminding-body membership and ongoing training
For the children’s food, HMRC accepts a reasonable estimate where keeping every small receipt is not practical, so a trip to the supermarket does not need a folder of slips. We keep a childminder-specific list so nothing routine gets missed.
Funding and parent payments
Is Funded-Hours and Tax-Free Childcare Money Taxable?
Yes. Money you receive through Tax-Free Childcare, and payments for government funded hours, are part of your trading income and must be declared, even though parents access them through a government scheme.
This trips a lot of childminders up, because the money arrives from different places: some from parents directly, some from a government account, some from your local authority. It all counts.
We make sure every stream is recorded so your income reconciles to what actually landed in your bank, with nothing missed and nothing double-counted at year end.
Getting set up right
Registration, National Insurance and Your Pension
Before you mind a single child you need to register with Ofsted (or a childminder agency), and you need to register as self-employed with HMRC. We make sure both are done, and on time, so you start trading the right way.
As a self-employed childminder you pay your Income Tax and National Insurance through Self Assessment. Paying National Insurance also protects your State Pension, and there are points where it is worth checking your record, which we do as part of your year-end.
Childminding is your business, so a pension is on you rather than an employer. We can talk you through simple, tax-efficient ways to put money aside for later, alongside your sole trader tax planning.
Business structure
Should a Childminder Be a Sole Trader or Limited Company?
For almost every childminder, the answer is sole trader, and we will tell you straight rather than sell you admin you do not need.
A limited company cannot use the HMRC home-cost arrangement that makes childminding so tax-efficient, it adds Companies House filings and a Corporation Tax return, and it rarely pays for itself at typical childminding income.
As a sole trader, you keep the home-cost claim, your admin stays light, and your tax is simpler. We only ever suggest a company if your numbers genuinely point that way, which for childminders is rare.
Day-to-day numbers
Simple Record-Keeping for Childminders
You did not become a childminder to do paperwork in the evenings. Done right, record-keeping takes minutes, not hours.
We set up light-touch bookkeeping so you log what parents pay you and snap a photo of the odd receipt as you go, rather than facing a shoebox in January.
That keeps your figures accurate, your home-cost claim easy to support, and your records ready for Making Tax Digital as it phases in. If you grow and take on an assistant, we can add payroll without you changing how you work.
Simple, fixed fees
Fixed Monthly Pricing for Childminders
Most self-employed childminders pay between £99 and £199 a month. That is a small share of one child’s fees, and it usually saves you more than it costs through reliefs a generic accountant would miss.
No hourly rates. No surprise bills. One fixed fee, a named, qualified accountant who knows the childminding rules, and a 30-day money-back guarantee.
Essentials
Startups and small companies that need essential compliance and year-end support without VAT or payroll.
£99/month- Preparation of Company Year-End Financial Statements
- Year End Corporation Tax Computation
- Submission of CT600 to HMRC
- Statement of Account submissions to Companies House
Premium Plus
Growing businesses that need complete accounting services, VAT return management, and payroll handling.
£199/month- Everything in Essentials
- Quarterly VAT return calculation and submission
- Payroll and benefits management
Enterprise
Established businesses that want strategic mentoring, business planning, and a part-time finance director driving growth.
£499/month- Everything in Premium Plus
- Business mentoring
- Part-time finance director
- Business plan
Trusted by self-employed clients
What Our Clients Say.
I’ve used several accountants in the past, but hands down there is no one better than Harvey at Zmartly. He really understands exactly what advice you’re looking for and explains everything clearly and professionally. Nothing ever feels rushed…
HeenaVerified Google review · 4 months agoI’ve had an excellent experience working with Zmartly. Harvey and the team are professional, responsive, and genuinely supportive. They explain things clearly, stay on top of deadlines, and always look for practical ways to save tax and improve…
land4 success (chill feel good)Verified Google review · 6 months agoI started working with Zmartly Accountants after having serious issues with my previous accounting firm. They were missing deadlines, incorrectly calculating VAT, constantly late, and extremely difficult and frustrating to communicate with. Switching to Zmartly was a huge…
Jorge Carballo GomezVerified Google review · 5 months agoGreat proactive service always up to date regarding accounting legislation. Harvey and Team will be always helping you with advise how to make your books look good. Already over 4 years using their service very happy.
Auris Property AcademyVerified Google review · 8 months agoI've had a terrible experience with multiple accountants. Zmartly have been incredible. If you do ecommerce / Amazon FBA you definitely need to go with someone who understands the complexities with it. Thanks to Harvey and his amazing…
Sean BarringtonVerified Google review · 5 months agoI’ve used several accountants in the past, but hands down there is no one better than Harvey at Zmartly. He really understands exactly what advice you’re looking for and explains everything clearly and professionally. Nothing ever feels rushed…
HeenaVerified Google review · 4 months agoI’ve had an excellent experience working with Zmartly. Harvey and the team are professional, responsive, and genuinely supportive. They explain things clearly, stay on top of deadlines, and always look for practical ways to save tax and improve…
land4 success (chill feel good)Verified Google review · 6 months agoI started working with Zmartly Accountants after having serious issues with my previous accounting firm. They were missing deadlines, incorrectly calculating VAT, constantly late, and extremely difficult and frustrating to communicate with. Switching to Zmartly was a huge…
Jorge Carballo GomezVerified Google review · 5 months agoGreat proactive service always up to date regarding accounting legislation. Harvey and Team will be always helping you with advise how to make your books look good. Already over 4 years using their service very happy.
Auris Property AcademyVerified Google review · 8 months agoI've had a terrible experience with multiple accountants. Zmartly have been incredible. If you do ecommerce / Amazon FBA you definitely need to go with someone who understands the complexities with it. Thanks to Harvey and his amazing…
Sean BarringtonVerified Google review · 5 months ago
4.9
Google · based on 63 reviewsCommon questions
Frequently Asked Questions
It's a special method HMRC agreed with the National Childminding Association (now Coram PACEY), set out in HMRC manual BIM52751. Instead of working out the business share of every household bill, you claim a fixed percentage of your home running and fixed costs based on the hours you childmind: at 40+ hours a week that's 33% of running costs (heating, lighting, metered water) and 10% of fixed costs (council tax, rent or mortgage interest), reduced pro-rata for fewer hours, for example 17% and 5% at 20 hours a week. We apply the right percentages for your actual hours every year.
On top of the household percentages, you can deduct 10% of your childminding income to cover wear and tear on furniture and household items used by the children, and you don't need receipts for it. It applies only to income from caring for children in your own home. We calculate it correctly so you get the full allowance without over-claiming.
From 6 April 2026, childminders with qualifying income over £50,000 must use Making Tax Digital for Income Tax, keeping digital records and sending HMRC quarterly updates. Crucially, once you're inside MTD you can no longer use the agreed percentages or the 10% wear-and-tear allowance; you switch to claiming the actual business proportion of your costs. The threshold drops to £30,000 from April 2027 and £20,000 from April 2028. We get your records MTD-ready in advance so nothing catches you out.
Yes. Money you receive through Tax-Free Childcare, and payments for government-funded hours, are part of your trading income and must be declared, even though parents access them through a government scheme. We make sure these are recorded so your income reconciles to what actually hit your bank account, with no surprises at year end.
Food and drink you provide to the children is an allowable expense, and HMRC accepts a reasonable estimate where keeping every small receipt isn't practical. Outings, mileage for the school run and trips (the HMRC simplified rate is 55p a mile for the first 10,000 business miles from April 2026, then 25p), toys, craft materials and safety equipment are all claimable too. We keep a childminder-specific expense list so nothing routine gets missed.
Almost never. A limited company can't use the HMRC childminder home-cost agreement, it adds extra Ofsted registration and accounting admin, and it rarely pays for itself at typical childminding income. For the overwhelming majority of childminders, sole trader is both simpler and more tax-efficient, and we'll tell you honestly if you're one of the rare exceptions.
We handle your bookkeeping, the childminder expenses agreement, your Self-Assessment return, and MTD readiness, with a named ACCA accountant who actually knows the childminding rules and replies within 72 hours. Essentials starts at £99/month for sole-trader childminders; Premium Plus at £199 adds proactive tax planning and MTD quarterly filing. Rolling monthly contract with a 30-day money-back guarantee.
Guides for childminders
Plain-English explainers, kept current with the latest HMRC rules.
Stop guessing. Stop overpaying. Let's sort your tax once and for all.
Zmartly Ltd · 20–22 Wenlock Road, London N1 7GU · 020 8175 5145 · info@zmartly.co.uk
ICAEW, ACCA and AAT qualified accountants.
Further reading