Running your childminding business

Expenses childminders can claim

Every pound of allowable expense reduces your taxable profit — so knowing what counts is worth real money. Childminders get some of the most generous expense rules of any sole trader, because so much of your home and week is given over to the business. Here is what you can claim, and how to apportion the tricky household costs.

Last updated 5 July 2026 · 6 min read

1. Two types of expense

Everything you claim falls into one of two buckets, and the difference matters:

Wholly business. Bought only for the children — claim 100%. Their food, toys, nappies, your Ofsted fee, public liability insurance.
Shared with your household. Used by your family and the business — claim a fair proportion. Heating, electricity, water, broadband, the wear-and-tear on your sofa.

2. What you can claim, category by category

Food & drink for the children

Meals, snacks and drinks you provide are a direct, fully deductible cost. Keep them separate from your own groceries, or apportion a mixed shop and note the split.

Examples: Milk, fruit, lunch ingredients, snacks, baby formula

Household costs (apportioned)

Gas, electricity, water, council tax, rent or mortgage interest, and broadband can be partly claimed for the proportion used for childminding — by hours of business use and rooms used, or via HMRC simplified expenses.

Examples: Heating, lighting, water, broadband, wear-and-tear on furnishings

Toys, equipment & play

Anything you buy for the children to use is allowable. Larger items (a garden playhouse, a double buggy) may be treated as capital — under cash basis you simply deduct the cost when you pay.

Examples: Toys, books, arts & crafts, prams, stair gates, high chairs

Outings & activities

Entry fees, class fees and travel for trips made in the course of childminding are claimable.

Examples: Soft play, toddler groups, swimming, farm and museum entry

Car & travel

Business mileage at 45p/mile (first 10,000 miles, then 25p), or a proportion of actual running costs. Keep a mileage log. Public transport fares for business trips also count.

Examples: School runs, outings, trips to buy supplies, bus/train fares

Insurance, registration & fees

The mandatory costs of operating: your Ofsted fee, public liability insurance, DBS checks, and any professional membership.

Examples: Ofsted registration, PL insurance, DBS, PACEY/EYA membership

Training & safeguarding

Courses you must keep up to date are allowable — but new qualifications that give you a lasting new skill can be treated differently, so keep them itemised.

Examples: Paediatric first aid, safeguarding, food hygiene, EYFS training

Admin, consumables & office

The everyday running costs of the business, including software like Dottie, stationery, and the consumables children get through.

Examples: Nappies, wipes, cleaning products, printer ink, invoicing software

3. How to apportion household costs

The most common HMRC-accepted method for childminders is hours of business use. Say you mind children 50 hours a week. There are 168 hours in a week, so your business fraction is roughly 50 ÷ 168 ≈ 30%. Apply that to the shared bills — often refined by the number of rooms the children actually use.

Annual bill	Business share (30%)	You can claim
Electricity £900	30%	£270
Gas £700	30%	£210
Broadband £360	30%	£108

The alternative is HMRC simplified expenses: a flat monthly amount based on the hours you work from home (£10, £18 or £26 a month for 25–50, 51–100, or 101+ hours). It is less paperwork but usually claims less than the hours-of-use method for a busy childminder. Whichever you choose, use it consistently and keep the workings.

Never lose an expense again

Snap a photo of any receipt and Dottie pulls out the amount, date and category, then files it under the right HMRC heading — ready for your tax return.

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Frequently asked questions

Do I need to keep receipts for everything?

Keep a record of every business expense — a receipt, invoice or bank/card statement line. HMRC can ask to see them for up to roughly six years. Small cash items like a loaf of bread for the children can be logged with a note if no receipt survives, but the more evidence you keep, the safer you are. Photographing receipts as you go (Dottie extracts the amount, date and category for you) means you never lose one.

How do I work out the business share of my gas and electricity?

Apportion by time and space. A common HMRC-accepted method is hours-of-business-use: total the hours you mind children in a week, divide by the hours in a week, and apply that fraction to the bill — often adjusted for the rooms used. Alternatively, HMRC simplified expenses lets you claim a flat monthly amount based on hours worked from home. Pick one method and apply it consistently.

Can I claim for wear and tear on my house and furniture?

Yes — a reasonable proportion of wear-and-tear on furnishings and household items used by the children is allowable. Historically childminders used the PACEY/HMRC agreed percentages; under Making Tax Digital you apportion actual costs on the standard basis instead. See our MTD guide for who is affected and when.

Can I claim food I give the children?

Yes. Food and drink you provide to the children in your care is a direct, fully allowable business cost. Keep it separate from your own household food shopping — a rough apportionment of a mixed shop is fine if you note how you worked it out.

What about my car?

You can claim business mileage for trips made for childminding — school runs, outings, trips to buy supplies. The simplest method is HMRC simplified mileage: 45p per mile for the first 10,000 business miles in the year, then 25p. Keep a mileage log. You cannot also claim fuel and running costs separately if you use the mileage rate.

Is my Ofsted registration fee an allowable expense?

Yes. Your annual Ofsted registration fee, along with public liability insurance, DBS checks, first-aid and safeguarding training, and professional membership (e.g. PACEY, NCMA/Early Years Alliance) are all allowable business costs.

Sources & further reading

This guide is general information, not tax advice. Rules change and individual circumstances differ — check GOV.UK or an accountant before filing.