The Ultimate 2026 MTD Roadmap for Childminders
Explains £50k/£30k thresholds, quarterly deadlines, and why BIM52751 no longer applies to childminders within MTD.
Making Tax Digital (MTD): The 2026 Roadmap
Making Tax Digital means keeping digital records and sending HMRC updates every 3 months. It depends on your turnover (money in, before expenses): over £50,000 from April 2026, over £30,000 from April 2027, over £20,000 from April 2028. KinderStart handles the digital link, the quarterly submissions, and the expense apportionment — so you stay compliant without rebuilding your bookkeeping from scratch.
MTD: The transition to digital record keeping
The mandation timeline
Your "Qualifying Income" (gross turnover before expenses) determines when you must join the digital regime.
| Income threshold | Applies from | What you must do |
|---|---|---|
| Over £50,000 | April 2026 | Submit digital records quarterly via an HMRC-approved tool |
| Over £30,000 | April 2027 | Submit digital records quarterly via an HMRC-approved tool |
| Over £20,000 | April 2028 | Submit digital records quarterly via an HMRC-approved tool |
The aggregation rule
The aggregation ruleMultiple income streams. HMRC calculates your threshold by adding all self-employed and property income. Earn £25,000 from childminding and £10,000 from a rental property, and you cross the £30,000 threshold — complying by April 2027.
The "Digital Link" mandate
Under MTD, the "Digital Link" is a legal requirement. Every transaction recorded in KinderStart must flow to HMRC without manual typing or copy-pasting.
If MTD applies to you, digital record-keeping is a legal requirement. Paper receipts stored in a drawer do not qualify.
- Excel is out: Spreadsheets requiring manual entry into the HMRC portal are not compliant.
- API is in: KinderStart communicates directly with HMRC's servers via a secure API. Your digital link is never broken.
The end of simplified expenses (BIM52751)
From April 2026, HMRC's childminder expenses guidance (BIM52751) no longer applies to childminders within MTD for Income Tax. They use the normal business expense rules instead. If you're not yet within MTD, you can still use it.
- Wear & Tear: Within MTD, the flat 10% deduction no longer applies. Track the actual cost of replacing domestic items and apportion them by business use.
- Use of Home: Within MTD, the fixed BIM52751 percentages no longer apply. Apportion household costs on a reasonable basis, such as an Area x Time formula: which rooms you use and for how many hours per week.
✅Automated apportionment
The Expense Engine. KinderStart's Expense Tracker works out a household-bill percentage from your weekly childminding hours and applies it to every utility bill you log.
Your continuous reporting cycle
MTD replaces the single annual tax return with a quarterly cycle.
- Quarterly updates: Every 3 months, submit a digital summary of your income and expenses.
- Estimated liability: After each submission, HMRC sends a real-time estimate of your upcoming tax bill — no more January surprises.
⚠️Ready to authorise?
Secure connection. Open the Finance tab and tap HMRC MTD to work through your readiness roadmap. Once you are within your mandation window, tap Connect KinderStart to HMRC to authorise the secure digital link.
Stay MTD ready with KinderStart
Automatic quarterly reporting, digital receipts, and HMRC-compatible records. All built in.
Cancel in the app before day 7 and you pay nothing.
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