Professional services & education
MTD software for childminders.
More attention for the children. Less worry about the books.
Parent fees, funded places and household spending create a financial routine unlike most businesses. Avona helps home-based childminders organise the actual records behind their care without relying on a pile of old receipts.
- Who it is for
- Childminders working as sole traders, managing their own business records and MTD for Income Tax updates.
- Available now
- Digital records, bank feeds, statement imports, transaction categorisation and quarterly self-employment updates. Pro adds customer invoicing, VAT accounting and reporting.
- Monthly price
- From £15/month for Lite. Pro is £20/month.
- Free trial
- Full access for 7 days. No credit card required.
- Annual-return limitations
- Quarterly updates do not replace your annual tax return. HMRC lists annual-return items including PAYE income, interest, dividends and pensions as in development. Check the listing and confirm support for your income sources before relying on Avona for your annual return.
Making Tax Digital
It’s what comes in.
Before costs go out.
Funding receipts and parent payments build gross business income before food and household costs. Use the relevant annual total rather than the amount left after running your home setting.
Understand Making Tax Digital →When does MTD apply?
Combined qualifying self-employment and property income, before expenses:
- Over £50,000 in 2024/25
- From 6 April 2026
- Over £30,000 in 2025/26
- From 6 April 2027
- Over £20,000 in 2026/27
- From 6 April 2028
Eligibility and exemptions matter. These are income thresholds, not tax-free allowances.
Check HMRC’s eligibility guidance ↗From the work to your records
Clear records for your childminding fees.
Bring the evidence into Avona, review the suggested categories and check the figures before submitting. These three examples show the records behind your childminding fees, shared purchases and parent and scheme payments for childcare fees.
| What you bring | How you use Avona | What you check |
|---|---|---|
| £650 for your childminding fees £95 spent on childcare craft supplies and consumables | Connect your bank or import the payment, then upload the invoice or receipt for childcare craft supplies and consumables. Review the income and the purchase as separate records. | Keep £650 as the sale and the £95 cost separately. The £555 left after this cost is not turnover. Check that the spending is eligible for your business. |
| £100 mixed purchase £80 for craft supplies for minded children; £20 for toys bought solely for your own family | Upload the itemised receipt and review the suggested category. Identify craft supplies for minded children separately from toys bought solely for your own family. | Only the eligible £80 business portion belongs in business costs. Exclude the £20 personal purchase, and check that importing both the bank transaction and the receipt has not counted the spending twice. |
| £200 received, then £400 £600 of agreed fees covered by the payments | Keep the supporting invoices and payment breakdown for parent and scheme payments for childcare fees. Match each receipt to the work it settles during your review. | Together the receipts settle £600. Do not count the same invoice and payment twice. Keep unpaid balances and any credits identifiable, and follow your accounting method for when income is recorded. |
Keep supporting documents alongside your figures, review business use and apply your accounting method consistently. HMRC: keeping business records ↗
The costs behind your work
Six expenses worth
keeping records for.
Examples for childminders. Claim only eligible business costs; mixed use, equipment and your accounting method can change the treatment.
Childcare registration fees
Relevant professional membership
Food supplied to children
Business share of household costs
Safety gates and equipment
Childcare activity supplies
One thing to watch
MTD changes the old wear-and-tear approach
HMRC's current guidance uses actual business costs for childminders in MTD, including a reasonable business share of mixed household costs and food. Do not automatically carry over the old fixed 10% wear-and-tear claim.
HMRC: childminder expenses and records ↗Fit the admin around the work
A routine around your childminding fees.
Keep food receipts, record a reasonable household-cost allocation and bring parent and funding payments together before reviewing the quarter.
Capture the supporting documents
Upload receipts or invoices for childcare craft supplies and consumables. Keep the date, supplier and amount legible, and distinguish craft supplies for minded children from toys bought solely for your own family.
How document capture works →Reconcile your childminding fees payments
Review each customer receipt against the work it covers. Keep the breakdown for parent and scheme payments for childcare fees available alongside the bank entry, so fees, refunds or timing differences can be explained.
How bank review works →Review before you submit
Review Avona AI’s suggested categories, check that your childminding fees income is complete, and remove duplicate or personal spending. Keep the evidence for parent and scheme payments for childcare fees ready for your annual-return review too.
Before you get started
Questions from childminders.
Does MTD apply to everyone in this profession?
No. This page covers childminders working as sole traders. Your start date depends on combined qualifying self-employment and property income before expenses, and any exemptions. Employment and limited-company work have different reporting arrangements.
Can I put all household food and utility bills through the business?
No. Childminders have specific HMRC guidance for expenses and record keeping. Keep the business basis clear and consult that guidance before applying a household allocation.
How do I record parent and scheme payments for childcare fees?
Example: £200 received, then £400 (£600 of agreed fees covered by the payments). Together the receipts settle £600. Do not count the same invoice and payment twice. Keep unpaid balances and any credits identifiable, and follow your accounting method for when income is recorded.
Which bookkeeping issue should I watch for?
MTD changes the old wear-and-tear approach. HMRC's current guidance uses actual business costs for childminders in MTD, including a reasonable business share of mixed household costs and food. Do not automatically carry over the old fixed 10% wear-and-tear claim.
Can I keep using my existing spreadsheet?
Yes. Bring your childminding fees income records and evidence of childcare craft supplies and consumables into Avona using supported spreadsheet uploads. Check dates, categories, personal spending and duplicates against the original documents before you approve the records.
Do quarterly updates complete my annual tax return?
No. You still need the annual tax return and any relevant adjustments or other income. HMRC currently lists annual-return items including PAYE income, interest, dividends and pensions as in development for Avona. Confirm support for your own income sources and circumstances before relying on Avona for the annual return.
Built for the way you earn
Bring your childminding records up to date.
Choosing Avona
Your questions, answered.
Can I create customer invoices?
Yes. You can create customer invoices with Avona Pro.
What if I am VAT-registered?
Full VAT accounting is available with Avona Pro, so you can manage your VAT-registered business with Avona.
Can my accountant review my records?
Yes. You can connect your Avona account to your bookkeeper or accountant so they can review your records.
Can I use my phone on site?
Yes. Every feature has a mobile-friendly version, so you can manage your accounts from your phone while you are on the move.
Can I keep using my personal bank account?
Yes. Avona supports Open Banking connections and PDF bank statement uploads. You can clearly separate personal and business transactions to keep your business records organised.