Scots childminders face being left £1,300 worse off every year after HMRC launched a new online system for self-employed workers to file tax returns.
The Making Tax Digital (MTD) initiative was rolled-out for for sole traders earning £50,000 and above in April this year, and will include those earning £30,000 and above from 2027.
Self-employed workers must now pay for commercial software so that they can file their tax returns – a job that could previously be done online for free or by post.
HMRC said it will cost an average of £320 to switch to government-approved software, then £110 a year after that, but experts said it could be four times that much.
Childminders also used to be able to claim an annual wear and tear allowance, which enabled them to deduct 10 per cent of their total childminding income towards wear and tear.
Bur childminders signed up to MTD will no longer be eligible for the blanket wear and tear allowance and will instead only receiving tax relief on actual purchases, repairs and replacement of items.
Calum Kerr, SNP MSP for Midlothian South, called for the charge on childminders to be “reversed immediately”.
He said: “The Labour Party must end this crippling charge on childminders and Anas Sarwar must make his position clear – does he back this reckless policy from his London Labour bosses?
“John Swinney’s transformational childcare package will be a complete game-changer for families across Scotland – 52 weeks a year, for every child from 9 months old, right until they leave Primary School – that’s what an SNP government on Scotland’s side will deliver.
“We are doing all we can to support childminders and expand access to childcare, while the Labour Party are doing the exact opposite – piling on costs, adding bureaucracy and risking the loss of vital childcare places.
“But childminders are being hammered by the Labour party inflicting sky-high energy costs, NIC increases, and now this sinister charge – they must reverse this decision immediately.”
It comes as a survey of over 4,800 UK childminders warns that changes arising from MTD could lead to over half of the profession leaving the workforce, resulting in thousands of children and families without access to early education and childcare provision.
HMRC said under MTD, some childminders may be able to claim more tax relief than they currently gain under the wear and tear allowance.
In a statement, HMRC said: “We anticipate very few childminders will need to sign up for Making Tax Digital from April, and those that do can still claim deductions for costs of wear and tear.
“They must include accurate records of all business expenses in their quarterly updates – and may be able to claim more tax relief than they currently do.
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“As with other sole traders, MTD will allow childminders to keep better track of their finances, helping their business to grow.”