You might have heard about something called Making Tax Digital (or MTD). Here's what it actually means for you, and how we're making sure you're already ahead of the game.
What is Making Tax Digital?
Making Tax Digital is a government initiative to modernise the tax system. Instead of submitting one annual tax return, you'll need to keep digital records and send quarterly updates to HMRC.
When does it start?
It's being rolled out in stages:
From April 2026 if you earn over £50,000
From April 2027 if you earn over £30,000
From April 2028 if you earn over £20,000
What does this mean for me?
You'll need to use software to keep digital records of your income and expenses, and submit updates to HMRC four times a year, as well as your final declaration at year end.
Is what I can expense changing?
Yes, there are some changes coming, though HMRC won't formally announce these until Spring 2026. Here's what we know so far.
Wear and tear is changing
Currently, childminders can claim a flat 10% wear and tear allowance. Under MTD, this will work differently. Instead of a flat rate, you'll claim based on actual costs, worked out by the proportion of time things are used for childminding.
For example, if your sofa is used 40% of the time for your childminding business, you'd claim 40% of the cost.
You might be able to claim more than you think
HMRC has said they think many childminders aren't claiming for everything they're entitled to. Things like kitchen utensils, or the cost of hiring a village hall for activities. It's worth thinking about what you use in your childminding that you might not have claimed for before.
Keeping records doesn't need to be complicated
HMRC won't see a breakdown of every item. They'll just see your total expenses. If they ever ask questions, they're not looking for proof that exactly 40% of your sofa's use was for childminding. They just want a plausible, rational explanation of how you worked out the proportion.
Here's the good news: you're already on track
If you're using the tiney app, you're already keeping digital records. Here's how we're supporting you:
Record expenses in the app. You can already do this. Every expense you log is a digital record.
Your income is sorted. Any income invoiced through us will be provided as part of your tax return. No chasing paperwork.
Quarterly exports. We're building the ability to export your data so you can submit your quarterly returns with ease.
Works with your accounting software. We'll make sure our exports are compatible with major bookkeeping software, so everything slots together smoothly.
What do I need to do right now?
Nothing urgent. Just keep using the app to record your income and expenses as you go. We'll keep you updated as MTD gets closer, and we'll make sure you have everything you need.
Want to know more? We'll also be running a webinar in January 2026 to walk you through everything and answer your questions. Keep an eye out for details soon.
Useful links
HMRC Making Tax Digital guidance: https://www.gov.uk/guidance/use-making-tax-digital-for-income-tax
Check if you need to use MTD: https://www.gov.uk/guidance/check-if-youre-eligible-for-making-tax-digital-for-income-tax
Childminder expenses guidance (BIM52751): https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim52751