To ask the Minister of Finance to detail any engagement his Department has had with HMRC to assess the impact of the removal of the 10 per cent wear-and-tear tax deduction for childminders, as part of the move to Making Tax Digital for Income Tax, on (i) childminders in Northern Ireland; (ii) the sustainability of the childminding sector; and (iii) the (a) affordability; and (b) availability, of childcare for local families.

My officials have raised this issue with HMRC, which is responsible for the administration of income tax. My officials pressed on what engagement HMRC has had, or is planning to have, with the local sector and what assessments have been carried out to gauge the impact of the proposed changes.

HMRC has indicated that it has carried out an assessment of the impact for childminders, and it has found no devolution-specific issues. HMRC has also indicated that they expect the number of childminders impacted to be low and those that are impacted can continue to claim tax relief for wear and tear by deducting the actual cost of buying, repairing or replacing items. Childminders can also deduct the cost of business expenses such as utilities, cleaning and equipment. HMRC has indicated that this will allow childminders to receive tax relief for all of the costs that they incur in relation to their childminding business.

HMRC has also stated that it is currently engaging with sector bodies, including with the NI Childminding Association (NICMA). My officials have pressed HMRC on the importance of recognising and acting on any concerns from the sector ahead of the proposed changes coming into effect.