Tax Guide for Childminders: Tax-Free Income and Expenses

The Accounted Business Team·12 February 2026·7 min read

Childminding is one of the most common self-employed occupations in the UK, and it comes with some unique tax rules. Because you work from your own home and your home is simultaneously your workplace, the lines between business and personal expenses need careful handling. This guide explains everything registered childminders need to know for the 2025/26 tax year.

Are Childminders Self-Employed?

Almost always, yes. If you are registered with Ofsted (or the Care Inspectorate in Scotland, or Care Inspectorate Wales) and look after children in your own home for payment, you are self-employed. You are not employed by the parents.

You must register as self-employed with HMRC if your total childminding income exceeds £1,000 in the tax year (6 April 2025 to 5 April 2026). If you earn £1,000 or less, the trading allowance covers you.

The Trading Allowance

If your gross childminding income is £1,000 or less, you do not need to register or file a tax return. If it exceeds £1,000, you can either:

Deduct the £1,000 trading allowance as a flat deduction (instead of actual expenses)
Deduct your actual business expenses

For most childminders, actual expenses will be significantly more than £1,000, so option 2 is almost always better.

HMRC Guidance Specific to Childminders

HMRC has published specific guidance for childminders that acknowledges the unique nature of the business. The key point is this: because you use your home for both personal and business purposes simultaneously, HMRC accepts that a reasonable proportion of your household costs are deductible.

There is no single fixed percentage — it depends on your circumstances. But HMRC's guidance suggests methods for calculating a fair split, which we cover below.

What Expenses Can Childminders Claim?

Proportion of home expenses

This is the biggest area and the one that requires the most thought. You can claim a proportion of:

Heating and lighting — Children need the house warm and lit during the hours you mind them. A common method is to calculate the proportion of hours in the week that children are present compared to total hours, then claim that percentage of your heating and electricity costs.
Council tax — Claim the same proportion as heating.
Water rates — If you are on a meter, claim the business proportion. More water is used when children are present (drinks, washing up, cleaning, toilets).
Rent or mortgage interest — Claim the proportion of your home used for childminding. If you use three rooms out of six for childminding during business hours, and you mind children 40 hours out of 168 hours in a week, a reasonable claim might be (3/6) x (40/168) = around 12% of your rent or mortgage interest.
Home insurance — You may need to notify your insurer that you run a childminding business from home. The business proportion of the premium is deductible.
Broadband and phone — The business proportion is deductible.

A simpler approach: HMRC flat rates

Alternatively, you can use HMRC's simplified expenses flat rate for working from home (£10-£26 per month depending on hours). Most full-time childminders would claim the maximum £26 per month (£312 per year). However, this is almost certainly less than the actual proportion of your costs, so the calculation method above is usually better.

Food and drink

Food you provide for the children in your care is a deductible business expense. This includes meals, snacks, drinks, and any special dietary items.

The practical challenge is separating food for the minded children from food for your own family. Here are two approaches:

Buy separately and keep receipts. Buy children's food items in a separate transaction and file the receipt as a business expense.
Estimate a reasonable proportion. If you provide breakfast, lunch, and snacks for three children five days a week, calculate the cost per child per day and multiply out. HMRC accepts reasonable estimates as long as you can show how you arrived at the figure.

Wear and tear on your home

Children are not gentle on homes. HMRC accepts that childminders can claim for additional cleaning costs and general wear and tear. This can include:

Extra cleaning products
Replacement of damaged items (carpets, furniture)
Repainting rooms more frequently than you otherwise would
Garden maintenance if the garden is used for childminding

Toys, books, and equipment

Items bought for the children to use during your care are deductible:

Toys and games
Children's books
Art and craft supplies
Outdoor play equipment
Car seats for transporting minded children
Highchairs, stair gates, and safety equipment
Bedding and cots for nap time

Ofsted registration and inspection costs

The cost of your initial Ofsted registration is deductible if you were already trading when you paid it (or if you paid it within seven years before starting to trade, as a pre-trading expense).

DBS checks (required for you, any household members over 16, and any assistants) are deductible. The annual Update Service fee (£16 per year) is also deductible.

First aid training, which Ofsted requires childminders to hold, is a deductible expense. You need to renew it regularly.

Paediatric first aid courses specifically are mandatory — claim the full cost.

Insurance

Public liability insurance is essential for childminders. The premium is fully deductible. Some childminders also carry:

Employer's liability insurance (if you have an assistant)
Professional indemnity insurance
Car insurance that covers business use (if you transport minded children)

All premiums for business-related insurance are deductible.

Training and CPD

Ofsted expects childminders to undertake regular CPD. Deductible training includes safeguarding courses, child development courses, SEND training, food hygiene, and health and safety training.

Vehicle costs

If you use your car to take minded children on outings, to school, or to activities, you can claim the business mileage:

45p per mile for the first 10,000 business miles
25p per mile after that

You must have appropriate car insurance and car seats for the children. The cost of additional car seats is a deductible expense.

Professional memberships and subscriptions

Membership of childminding organisations such as PACEY (Professional Association for Childcare and Early Years) or local childminding groups is deductible. Subscriptions to early years resources, planning tools, and publications also count.

Tax-Free Childcare and Government-Funded Hours

If parents pay you using Tax-Free Childcare vouchers or the 15/30 hours free childcare entitlement, you still need to include this income in your accounts. The money comes from the government rather than directly from parents, but it is still your taxable income.

Working Out Your Tax

Add up all childminding income (parent payments, voucher payments, government-funded hours payments)
Subtract allowable expenses
The result is your taxable profit

Apply the £12,570 Personal Allowance, then:

20% on income from £12,571 to £50,270
40% from £50,271 to £125,140
45% above £125,140

National Insurance:

Class 2: £3.45 per week (if profits above £12,570)
Class 4: 6% on profits between £12,570 and £50,270, then 2% above

Record Keeping

HMRC requires you to keep records for at least five years after the filing deadline. For childminders, this includes:

Payment records from each parent (dates and amounts)
All expense receipts
Attendance records (which children were present and when)
Mileage logs
Contracts with parents

Attendance records are particularly important because they support your home expense, food, and wear-and-tear claims.

Keeping all of this straight alongside actually caring for children is a challenge. Accounted is designed to make it simple — Penny, the AI bookkeeper, handles categorisation and record keeping so you spend less time on paperwork. Snap receipts for food and supplies on the go and they are filed instantly.

Common Mistakes Childminders Make

Not claiming enough home expenses. Many childminders use the flat rate because it is easy, leaving hundreds of pounds of deductions unclaimed. Take the time to calculate actual costs.
Forgetting food costs. You feed children every day — this adds up to a significant expense over a year.
Not keeping attendance records. Without them, you cannot support your proportion-based claims.
Missing training costs. First aid courses, safeguarding refreshers, and CPD all count.
Not registering as self-employed. Some childminders assume the parents sort the tax out. They do not — it is your responsibility.

Start Your Free Trial With Accounted

Childminding is rewarding work, but the admin side does not have to be overwhelming. Accounted gives childminders a straightforward way to track income, expenses, and tax obligations. Start your free trial today and take the hassle out of your bookkeeping.

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