You've passed your Ofsted checks, the toys are out, and your first families are booked in. Now there's a second registration to deal with, and it's the one that worries most new childminders: telling HMRC.
The good news is that it's simpler than the Ofsted process. As a childminder you're self-employed, so registering with HMRC means registering as a sole trader for Self Assessment. That's it. No company to form, no payroll to run (unless you take on an assistant).
This guide walks you through exactly how to register, when the deadline falls, how you get your UTR, and the one big rule change that affects how childminders work out their expenses from April 2026 onwards.
It's written for childminders in England registering for the first time. If you'd rather hand the whole thing to someone, our accountants for childminders can register you and file your first return for you.
How do you register as a childminder with HMRC?
You register as self-employed by registering for Self Assessment as a sole trader. You must do this by 5 October after the end of the tax year you started childminding in, you'll then get a Unique Taxpayer Reference (UTR) by post, and you file a tax return each January.
There are two separate registrations when you start childminding, and people often confuse them:
- Ofsted (or a childminder agency) approves you to look after children. You cannot legally start without it.
- HMRC registers you for tax. This is the one this guide covers.
This post is only about the HMRC side. For the childcare side, gov.uk confirms that "you must register with Ofsted or a childminder agency to look after children in your own home or someone else's home," and that it "usually takes up to 12 weeks to process your application." Sort that out first, because you can't earn childminding income until you're approved.
Are you actually self-employed as a childminder?
Yes. A registered childminder working from their own home is self-employed and runs their own business, which HMRC treats as a sole trader.
A sole trader is, in gov.uk's words, "the simplest business structure to set up and keep records for." You "work for yourself," you're "classed as self-employed," and you "make all the business decisions." That's the right structure for almost every childminder.
You do not need to be a limited company. In fact, going limited usually costs a childminder money and admin, and it can mean losing the home-based expense agreement that makes childminding tax-efficient in the first place. We cover that in detail in our guide on whether a childminder should be a limited company, but the short answer is: almost never.
Do you have to tell HMRC if you only earn a little?
Not always. There's a £1,000 tax-free trading allowance, so if your gross childminding income for the tax year is £1,000 or less, you may not have to register or report it at all.
Per gov.uk: "If your annual gross trading income is £1,000 or less, from one or more trades you may not have to tell HMRC." Note that's gross income (your fees before any expenses), not profit.
You must register for Self Assessment as a sole trader once you "earn more than £1,000 in a tax year (from 6 April to 5 April)." For a working childminder that threshold is crossed very quickly, often in the first month, so most childminders do need to register.
Even if you're under £1,000, it can be worth registering anyway. It protects your National Insurance record and lets you claim a loss in a start-up year. We weigh that decision up in our £1,000 trading allowance guide for childminders.
How do you register for Self Assessment, step by step?
Here's the full process, in order.
1. Get your Ofsted registration sorted first
You'll need your enhanced DBS check with barred lists, paediatric first aid training for the age group you'll mind, two references and a health declaration. Get the Ofsted approval in place before you start earning. HMRC registration comes after you've actually started trading.
2. Check you have your National Insurance number
You need a National Insurance number to register for Self Assessment. If you've ever worked or claimed benefits in the UK you'll already have one. Dig it out before you start.
3. Set up a Government Gateway account
You register online through your HMRC online account, which you access with a Government Gateway user ID. If you don't have one, you create it as part of the registration journey on gov.uk. Keep the user ID and password somewhere safe, you'll use them every January.
4. Register as self-employed (a sole trader)
Use the "Register for Self Assessment" service on gov.uk and select that you're self-employed. Registering as a sole trader for Self Assessment also signs you up to pay Class 2 and Class 4 National Insurance through your tax return, so you don't need a separate National Insurance registration.
5. Wait for your UTR to arrive
Your Unique Taxpayer Reference is the 10-digit number HMRC uses to identify you. As gov.uk puts it: "You get a Unique Taxpayer Reference (UTR) when you register for Self Assessment." You'll "usually get your UTR by post around 15 days after you register." You cannot file a return without it, so don't leave registration until late January.
6. Activate your account and file when the time comes
Once your UTR and activation code arrive, finish setting up your online account. Then you file your Self Assessment return after the tax year ends. Our childminder's guide to your first tax return walks through the return itself box by box.
When is the deadline to register as a childminder with HMRC?
You must register by 5 October following the end of the tax year in which you started.
gov.uk states it plainly: "You must tell HM Revenue and Customs (HMRC) by 5 October" if you need to complete a tax return for the previous tax year. The UK tax year runs 6 April to 5 April.
Illustrative example: when Aisha needs to register
Aisha starts childminding on 1 September 2025. That falls in the 2025/26 tax year (6 April 2025 to 5 April 2026).
- Register with HMRC by: 5 October 2026
- File her 2025/26 tax return online by: 31 January 2027
- Pay any tax and National Insurance for 2025/26 by: 31 January 2027
The filing and payment deadlines come from gov.uk's Self Assessment deadlines: the online filing deadline is "midnight 31 January" following the tax year, and the balancing payment is due the same day. Leaving 16 months between starting and your first tax bill is normal, but don't be lulled, set aside money as you go.
What tax and National Insurance will you pay?
You pay Income Tax and National Insurance on your profit, which is your childminding income minus your allowable expenses, not on everything that comes in.
For 2025/26 the key figures are:
| Figure | 2025/26 amount | What it means for you |
|---|---|---|
| Personal Allowance | £12,570 | Profit up to this is tax-free (if it's your only income) |
| Basic rate Income Tax | 20% | On taxable profit above the Personal Allowance |
| Class 4 NIC main rate | 6% | On profit between £12,570 and £50,270 |
| Class 4 NIC Lower Profits Limit | £12,570 | Class 4 NIC starts above this |
| Small Profits Threshold | £6,845 | At or above this, your NI record is maintained |
| Trading allowance | £1,000 | Tax-free; can be claimed instead of expenses |
Figures are for the 2025/26 tax year and apply to England, Wales and Northern Ireland. Scotland sets its own Income Tax rates and bands.
A quick note on Class 2 National Insurance: since 6 April 2024 it's no longer charged as a flat weekly amount. If your profit is at or above the Small Profits Threshold of £6,845 for 2025/26, your National Insurance record is treated as maintained without you paying Class 2. Below that, you can choose to pay Class 2 voluntarily (£3.50 a week for 2025/26) to protect your State Pension.
Illustrative example: a childminder's first tax bill
Priya, a sole-trader childminder, makes £18,000 in fees in 2025/26 and claims £4,000 of allowable expenses, leaving a profit of £14,000.
- Profit: £14,000
- Less Personal Allowance: £12,570
- Taxable profit: £1,430
- Income Tax at 20%: £1,430 x 20% = £286
- Class 4 NIC at 6% on profit above £12,570: £1,430 x 6% = £85.80
- Total due: £371.80
This is illustrative and assumes childminding is Priya's only income. Your own figures will differ. You can sanity-check your own numbers with our self-employed tax calculator.
How do childminders work out expenses, and what's changing?
This is the part that's genuinely childminder-specific, and it's where the rules changed on 18 March 2026.
The longstanding childminder agreement (if you're not yet in MTD)
For years, HMRC has let childminders use a simple, generous shortcut instead of working out the exact business share of every household bill. Under the agreement set out in HMRC's manual BIM52751 and the childminder expenses guidance, a childminder working 40 or more hours a week can claim:
- A proportion of heating and lighting (running costs), worked out by dividing your hours by 40 then multiplying by 33, giving up to 33% at full time.
- A proportion of council tax, rent, mortgage interest and insurance (fixed costs), worked out by dividing your hours by 4.
- 10% of your childminding income for wear and tear of furniture and household items. gov.uk lets you "claim 10% of your income from caring for children in your own home for wear and tear."
- The cost of food and drink you provide to the children, with no receipts needed. gov.uk confirms: "You do not need to keep receipts for food and drink you provide to the children you care for." You also don't need receipts for individual items costing less than £10.
These are still available to childminders who are not yet inside Making Tax Digital for Income Tax. We go deeper on the percentages in our HMRC childminder expenses agreement guide.
What changes under Making Tax Digital for Income Tax
From 18 March 2026, HMRC's updated guidance confirms that once you're inside Making Tax Digital (MTD) for Income Tax, you can no longer use the bespoke childminder percentages or the 10% wear-and-tear deduction. Instead you move to standard rules: you "claim for the actual amount you spent on buying, repairing or replacing household items and furniture," and for household running costs "you'll need to find a reasonable method of working out the percentage" that relates to your childminding.
In plain terms: inside MTD, no more 10% flat wear-and-tear, and no more 33%/divide-by-4 shortcuts. You apportion costs based on actual business use, keep digital records, and submit quarterly updates.
When does MTD apply to you?
MTD for Income Tax is being phased in by qualifying income (your combined gross self-employment and property income):
| Qualifying income over | Based on tax year | You must use MTD from |
|---|---|---|
| £50,000 | 2024/25 | 6 April 2026 |
| £30,000 | 2025/26 | 6 April 2027 |
| £20,000 | 2026/27 | 6 April 2028 |
Most childminders' fees sit below £50,000, so you likely won't be in the first wave from April 2026. But the £30,000 and £20,000 thresholds will pull many childminders in by April 2027 or April 2028, so it pays to understand the change now. Our childminder MTD guide explains exactly what to do when your turn comes.
What records should you keep from day one?
Keep it simple but consistent. From your very first day of trading, record:
- Income: what each family pays you and when. PACEY's cash book and attendance register is an HMRC-accepted way to record this.
- Expenses: receipts for items of £10 or more, plus your hours worked each week (needed for the percentage method if you're not in MTD).
- Hours: the agreement is based on hours worked, not the number of children, so a simple weekly hours log is gold.
Good records from day one make your first return painless and keep you ready for MTD. If bookkeeping isn't your thing, our bookkeeping service keeps childminders tidy and tax-ready year round.
Frequently asked questions
Do I register with HMRC or Ofsted first?
Ofsted (or a childminder agency) first, because you can't legally look after children, or earn childminding income, until you're approved. Once you've started trading, you register with HMRC for Self Assessment by the following 5 October.
How long does it take to get a UTR as a childminder?
You'll usually get your Unique Taxpayer Reference by post around 15 days after you register for Self Assessment, according to gov.uk. Register in good time, because you can't file your tax return without it.
Do childminders pay tax on the first £1,000?
If your gross childminding income for the tax year is £1,000 or less, the trading allowance means you may not have to tell HMRC or pay tax on it. Once you earn more than £1,000, you must register for Self Assessment, though you can still choose to deduct the £1,000 allowance instead of your actual expenses if that works out better.
Can a childminder still claim the 10% wear-and-tear allowance?
Yes, if you are not yet inside Making Tax Digital for Income Tax. Once MTD applies to you, HMRC's guidance updated on 18 March 2026 confirms the 10% wear-and-tear deduction and the bespoke childminder percentages no longer apply, and you claim actual costs instead.
Do I need to register for VAT as a childminder?
Almost certainly not. The VAT registration threshold is £90,000 of taxable turnover, and registered childminding (welfare services) is generally exempt from VAT in any case. The vast majority of childminders never touch VAT.
What if I also have a job alongside childminding?
You still register for Self Assessment for your self-employed childminding income. Your employer handles tax on your wages through PAYE, but your childminding profit is reported separately on your tax return, and your Personal Allowance is shared across both.
Get help with your tax return →
Key takeaways
- As a childminder you're a self-employed sole trader, so you register with HMRC for Self Assessment.
- The deadline is 5 October after the end of the tax year you started in.
- You'll get a 10-digit UTR by post about 15 days after registering, then file each January.
- Income under £1,000 may be covered by the trading allowance, but most working childminders cross that quickly.
- From 18 March 2026, childminders inside MTD for Income Tax lose the bespoke percentages and the 10% wear-and-tear deduction and move to actual-cost rules.
Want it done properly the first time? Book a free 20-minute call with a Zmartly accountant for childminders and we'll register you with HMRC, sort your records and file your first return.
