Childminders accounting, handled.

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.