Childminders must now prove their business is being run to make a profit or could be forced to repay thousands of pounds in backdated tax credits.
HM Revenue & Customs began sending letters to childminders who claim Working Tax Credits (WTC) last July, asking them for evidence including business plans, examples of advertising and addresses of customers.
Since then, many childminders have had their credits stopped and received bills from HMRC running into the thousands of pounds.
The move is part of a blanket change to WTC eligibility for the self-employed, announced in the 2015 Budget.
Grassroots childminding networks are rallying together to question why childminders are not receiving the same tailored response as they do for their annual tax returns. Many low-income and part-time childminders fear the loss of WTC will put them out of business.
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