UK childminder compliance

Making Tax Digital for childminders — the 2026 guide

From April 2026, the way most full-time UK childminders report income to HMRC changes. One annual Self Assessment becomes five submissions — four quarterly updates plus a final declaration — all from MTD-recognised software. Here is what it means for you, and exactly when you have to do something.

Last updated 6 May 2026 · 7 min read

1. When does MTD apply to you?

You are caught by MTD for Income Tax based on your gross self-employment + property income in the previous tax year. Gross — not profit. If childminding is your only income source, this is just your turnover.

Tax year you joined MTD	If gross income is over	First quarterly update due
6 April 2026	£50,000	7 August 2026
6 April 2027	£30,000	7 August 2027
6 April 2028	£20,000	7 August 2028

A full-time childminder with 4–5 children typically grosses £35–£55k a year, so most full-time childminders will be inside MTD by April 2027 at the latest.

2. The four quarterly deadlines

Once you are in MTD, you submit a summary of income and expenses every quarter — five weeks after the quarter ends. Quarters are fixed (you cannot align them to your accounting period unless you opt in to calendar quarters):

Quarter covers	Submission deadline
6 April – 5 July	7 August
6 July – 5 October	7 November
6 October – 5 January	7 February
6 January – 5 April	7 May
Final declaration	31 January after tax-year end

3. What changes specifically for childminders

On 18 March 2026, HMRC updated BIM52751 to clarify that childminders within MTD must use the standard approach for calculating taxable profits. In practice, three things change:

No more PACEY simplified expenses. The flat-rate concession for utilities/wear-and-tear under the long-standing PACEY/HMRC agreement does not apply under MTD. You apportion actual costs (or use HMRC simplified expenses on the standard sole-trader basis).
Cash basis is fine — and is the default. Since April 2025 cash basis is the default for sole traders. Most childminders should stay on it; under cash basis you cannot claim capital allowances, but you deduct apportioned costs the same way.
Digital records, not just totals. You log each transaction (date, amount, category) digitally. Spreadsheets are allowed only with bridging software that submits to HMRC.

4. How Dottie fits in

Dottie keeps digital records the way MTD requires: every invoice you send and every expense you log is captured as a categorised, dated, digital entry — not a row on a paper book. From there, two paths to HMRC:

Bridge to FreeAgent / Xero / QuickBooks. Export an MTD-shaped CSV from Dottie's reports into your existing bookkeeping software. We are working on a one-click sync to FreeAgent (free for FreeAgent customers of NatWest/RBS/Mettle).
Direct quarterly submission (roadmap). A native Dottie + HMRC connection so you never leave the app. Targeted for the 2027 threshold drop.

Get MTD-ready records from day one

Dottie keeps every invoice and expense as a digital record HMRC will accept under MTD. 7 days free, no credit card.

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Frequently asked questions

When does MTD start for childminders?

From 6 April 2026 if your gross self-employment + property income is over £50,000. From 6 April 2027 if it is over £30,000. From 6 April 2028 if it is over £20,000. The threshold is gross income, not profit, and it counts childminding plus any other self-employed income you have.

What does MTD actually require me to do?

Three things. (1) Keep digital records of every income and expense item — not paper or just a spreadsheet — using HMRC-recognised software. (2) Send a quarterly summary to HMRC five weeks after each quarter ends (deadlines: 7 August, 7 November, 7 February, 7 May). (3) File a final declaration by 31 January after the tax year ends.

Are the quarterly updates the same as a tax return?

No. Quarterly updates are short summaries of income and expenses, not full tax returns. The annual final declaration is your tax return — submitted by the same 31 January deadline as Self Assessment is now.

Can childminders still use the PACEY/HMRC simplified expenses concession?

Not under MTD. HMRC clarified on 18 March 2026 (BIM52751) that childminders within MTD must use the standard approach to calculating taxable profits — the long-standing concession for flat-rate utilities and wear-and-tear deductions does not apply. Outside MTD, the concession still works as before.

Should I be on cash basis or traditional accounting?

Cash basis has been the default for sole traders since April 2025, including childminders. Most childminders should stay on cash basis — it is simpler and works fine under MTD. You record income and expenses when money actually moves, not when invoices are issued.

Do I have to use software, or can I keep doing my spreadsheet?

Once you are within MTD you must use software that connects to HMRC — a "spreadsheet plus bridging software" approach is allowed. A standalone spreadsheet is not. Dottie handles the digital-records and quarterly-summary side; for the actual HMRC filing we integrate with HMRC-recognised filing tools (FreeAgent, QuickBooks, Xero) so you do not need to learn a separate package.

What if I am under the £20k threshold?

You stay on the existing Self Assessment process — one return a year, due 31 January. There has been no announcement of MTD applying below £20k. You can still benefit from digital record-keeping (and Dottie still helps), but it is not yet mandatory.

Sources & further reading

This guide is general information, not tax advice. Rules and dates may change — always check GOV.UK and consider speaking with a qualified accountant.