5 Things You Think Are Tax Deductible (But Actually Aren't)

The Myth-Busters Guide to Childminder Expenses: Avoiding the HMAC Penalty

When you work from home, the line between 'living costs' and 'business costs' can become incredibly blurred. As we approach April 2026 and the introduction of Making Tax Digital (MTD), HMRC is becoming increasingly strict about what childminders can and cannot claim.

A simple mistake in your manual spreadsheet could lead to an 'Incorrect Return' penalty. Here are the five most common 'expenses' that childminders try to claim—but which HMRC will almost always disallow.

[!WARNING] Claiming for prohibited items is a major audit risk. This list accompanies our Complete Guide to Childminder Allowable Expenses, which explains the rules you can follow.

1. The School-Run Speeding Ticket

You're running late for a school pick-up, and you get caught by a camera. It's a business journey, so you can claim the fine, right? No. HMRC's rule is that penalties for breaking the law are never tax-deductible, even if they occurred during a business activity. This applies to parking tickets too.

2. Your Morning Gym Session

'I need to be fit to look after toddlers all day!' While true, a gym membership has 'duality of purpose.' You benefit from being fit in your personal life just as much as your business life. Unless the expense is 'wholly and exclusively' for the business, you cannot claim it.

3. Your Morning Coffee and 'Lunch on the Go'

If you're out at a playgroup and buy a coffee or a sandwich for yourself, it's generally not claimable. HMRC views food for the business owner as a 'normal cost of living.' You have to eat whether you're working or not. (Note: Food for the children is, of course, fully claimable).

4. Designer Brands and 'Interview Clothes'

Unless it is a specific uniform with your setting's logo permanently attached, you cannot claim for your work clothes. A 'smart outfit for an Ofsted inspection' is still just an outfit you can wear on the weekend.

5. 100% of Your Mobile Phone Bill

Unless you have a dedicated handset and SIM card used only for the business, you cannot claim 100% of the cost. You must apportion the bill based on your actual business use vs personal use (e.g., 50/50). This is exactly where digital record-keeping proves its value during an audit.