How much tax should a childminder set aside? Tax and allowable expenses for 2025/26
Childminders are usually self-employed, and the home is also the workplace. That makes the home costs the biggest question: how much of the heating, electricity and rent or mortgage-related costs is a business cost.
What the tax looks like
Using the 2025/26 rates (England, Wales or Northern Ireland, no other income), a childminder with £36,000 of takings and £6,000 of allowable costs has £30,000 of profit and about £4,532 of income tax and Class 4 National Insurance for the year, roughly £378 a month. The figures are an illustration, not an average for the trade. Tax is on profit, not takings.
| Profit for the year | Income tax + Class 4 NI | Per month | Per £1 of profit |
|---|---|---|---|
| £18,000 | £1,411.80 | £118 | 8p |
| £30,000 | £4,531.80 | £378 | 15p |
| £45,000 | £8,431.80 | £703 | 19p |
Open the calculator already filled in with this example and change the two numbers to yours. It also shows the January and July payment dates.
Costs a childminder usually claims
Claim only what you actually spent on the business, and only the business share of anything you also use personally.
- Food and activities for the children you mind: snacks, meals, craft supplies.
- Toys, books and safety equipment: stair gates, first aid kits, outdoor play items.
- Insurance and registration costs that you pay to run the setting.
- Training such as paediatric first aid and safeguarding updates.
- Share of the home's running and fixed costs: see the next section.
- Outings: transport and entry costs for the group.
The general list is on GOV.UK: self-employed expenses you can claim, and what you can't. If your costs for the year are under £1,000, the trading allowance may leave you less tax.
The home-cost share: HMRC's hours table
HMRC's business income manual sets a share of household running costs (heat, light and similar) and fixed costs (such as council tax) based on hours worked, not the number of children. At 10 hours a week the shares are 9% of running costs and 3% of fixed costs; at 20 hours, 17% and 5%; at 30 hours, 25% and 8%; and at 40 hours or more, 33% and 10%. Hours spent while no child is in your care don't count. Only costs and hours for your own home are covered; renting a separate venue is deducted as an ordinary cost. The manual (updated 4 August 2026) says this table doesn't apply to childminders within Making Tax Digital from April 2026, who use the standard apportionment instead. Check which applies to you.
VAT
The VAT registration threshold is £90,000 of taxable turnover over 12 months. Check GOV.UK if your income is anywhere near it.
Records worth keeping
- Keep the register of hours each week, as the home-cost share depends on it.
- Keep food receipts separate from the family shop or flag the childminding items on each one.
- Record each family's payments by month, including any fee-funded hours paid by the council.
- Keep the bills the home-cost share is calculated from: gas, electricity, water, council tax.
Built for childminders: family income, use of home and records in one workbook: the Childminder Accounts Spreadsheet UK Kit is a one-off £4.99 download for Excel and Google Sheets. It is a spreadsheet only: nothing here files anything with HMRC, and the sheet doesn't replace an accountant if your case is complicated.
Dates matter too: the 2025/26 return and tax are due on 31 January 2027, and payments on account can make that January bigger than the year's bill.
This is a planning guide, not tax advice. Figures worked with the calculator's 2025/26 rules, and GOV.UK sources read on 21 October 2026: Expenses if you're self-employed, Business income manual BIM52751 (childminders), When to register for VAT.
Try the calculator with this example