Running a childcare business comes with many daily costs. From toys and learning materials to cleaning supplies and staff training these expenses quickly add up.
However many nursery owners and childminders miss out on claiming some of these legitimate business costs often because they are small frequent or simply part of everyday routines.
Over time these overlooked expenses can make a noticeable difference potentially leading to higher tax bills and an incomplete picture of your true business costs.
Understanding what you can claim and keeping accurate records can help ensure you are not paying more than necessary.
Here are seven expenses childcare businesses often forget to claim 👇
1. Toys and Learning Materials 🧸
Educational toys, puzzles, books and games used in childcare settings are typically considered business expenses.
These items are not just optional extras, they play a key role in supporting children’s development, learning and engagement. Because they are used directly as part of your service they are generally allowable costs.
Many childcare providers regularly purchase new materials to keep activities fresh and age appropriate. However because these purchases can be frequent and relatively low in value they are sometimes not consistently recorded.
Over time these small purchases can add up significantly so it is important to track them properly.
2. Arts and Craft Supplies 🎨
Creative activities are a core part of most childcare settings and the materials used are often claimable business expenses.
This can include items such as:
paints
colouring pens and pencils
paper and card
glue stickers and craft kits
These supplies are often purchased in small amounts throughout the year which makes them easy to overlook when reviewing expenses.
However when combined these regular purchases can represent a meaningful cost to your business. Keeping receipts or maintaining a simple record can help ensure they are not missed.
3. Outdoor Play Equipment 🛝
Outdoor play is an important part of children’s development and is encouraged in most childcare settings.
Items such as playhouses, slides, outdoor toys, bikes and garden play equipment including sand and water play resources may be allowable business expenses.
Some of these purchases may be more significant in value while others are smaller ongoing costs. Both are important to track.
It is also worth noting that outdoor equipment can wear out over time and need replacing making it an ongoing expense rather than a one off cost.
4. Cleaning and Hygiene Supplies 🧽
Maintaining a clean, safe and hygienic environment is essential in childcare.
Common costs include:
cleaning products
disinfectant
gloves
hand sanitiser
paper towels and wipes
Because these are everyday essentials they are often purchased frequently and in smaller amounts.
This makes them one of the most commonly overlooked expense categories. However over the course of a year cleaning and hygiene supplies can represent a significant cost.
Ensuring these purchases are recorded consistently can help give a more accurate view of your overall expenses.
5. Staff Training 🎓
Investing in staff training is essential for maintaining high standards of care and meeting regulatory requirements.
Training that helps staff maintain or improve their skills may be claimable including:
safeguarding training
first aid courses
childcare development programmes
refresher courses
Because training may only happen a few times a year it can sometimes be forgotten when reviewing expenses.
However these costs are often higher in value than day to day purchases making them important to include in your records.
6. Insurance 🛡
Insurance is a necessary part of running a childcare business and helps protect both your business and the children in your care.
Common types of insurance include:
public liability insurance
professional indemnity insurance
These are essential costs for many childcare providers and are typically allowable business expenses.
As these payments are often made annually they can sometimes be overlooked especially if they are paid by direct debit or renewal.
Reviewing your annual expenses carefully can help ensure these important costs are included.
7. Food and Snacks for Children 🍎
If food is provided as part of your childcare service the cost of snacks and meals may be considered a business expense.
This can include:
snacks and drinks
ingredients for meals
basic food supplies
Like cleaning products and craft materials, food is often purchased regularly in smaller amounts making it easy to underestimate the total cost over time.
Keeping a simple record of these purchases can help ensure they are properly accounted for.
Conclusion
Many of these costs may seem small on their own.
But when recorded properly they can make a noticeable difference to the overall cost of running a childcare business and your final tax position.
Small frequent purchases are often the easiest to overlook yet they can have a significant cumulative impact.
By keeping accurate records throughout the year you can:
gain a clearer understanding of your true business costs
improve the accuracy of your accounts
ensure that no legitimate expenses are missed
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