AQO 3330/22-27
Mrs Michelle Guy
Alliance Party
Lagan Valley
Tabled Date: 12/03/2026
Answered On Date: 25/03/2026
Priority Written: No
Question:
To ask the Minister of Education, in the absence of HMRC carrying out a local impact assessment on proposed changes to the wear and tear allowance for childminders, when his Department will review the potential impact this will have on the childcare sector.
Answer:
Taxation policy is a retained matter, and as such the Treasury and His Majesty’s Revenue and Customs (HMRC) have responsibility for tax policy and administration across the United Kingdom, including Northern Ireland. This includes decisions taken under their Making Tax Digital programme, and the removal of the 10 per cent wear‑and‑tear allowance previously available to childminders. Under established Executive protocols, the Department of Finance leads on engagement with Treasury and HMRC regarding tax matters. My Department has received an increasing number of representations from childminders and sector bodies outlining concerns about the proposed removal of the allowance. These concerns relate both to the potential financial implications and to the increased administrative burden associated with the new arrangements. In light of this, I have written to the Minister of Finance to: inform him of the volume of correspondence received on this issue; seek clarification on whether HMRC has undertaken any analysis of the potential impact on childminders in Northern Ireland; and request that the Department of Education be kept informed of any developments. I have also asked that I receive a copy of HMRC’s formal guidance once it becomes available, which I understand was expected in early 2026. My Department does not hold detailed financial information for individual childminders, the majority of whom operate as private commercial enterprises, and there is understandable reluctance within the sector to share business‑sensitive data — a point also highlighted in the 2025 Childcare Providers Targeted Business Support report undertaken for the Department for the Economy. This limits our ability to undertake any robust local assessment of financial loss or individual impact. Looking ahead, and subject to Executive funding, the proposed Business Advisory Service within the draft Early Learning and Childcare Strategy may provide scope for more structured analysis of business pressures within the sector, including those arising from taxation or regulatory changes. My officials will monitor any impact the HMRC changes may have on childminder provision at a strategic level in Northern Ireland.
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