FOSTERING FINANCES FULL
FOSTERING FINANCES REGISTRATION

all children under 10 (regardless of gender).

all children of the same gender under 16.

Housing benefit is for rented accommodation (not available if a carer has a property that they own and rent out) employment income).įostering income is disregarded for Housing Benefit purposes. If you have any fostering income in excess of your qualifying amount, you also have your personal allowance to use as well (providing you have no other income e.g. If your income is over the qualifying amount, the excess is treated as your taxable income. If your total fostering income is less than your ‘Qualifying Amount’ then your taxable income is deemed as NIL and therefore you have no tax to pay. All receipts from your fostering service are included in your income (i.e. In order to qualify for this tax relief you will need to group together the total income you received for your fostering duties.

£250 per week per placement over the age of 11.

£200 per week per placement under the age of 11.

The second element is a weekly rate of:.

If you have only been a carer for part of the tax year, the amount is calculated on a pro-rata basis from the date you were approved in the year.

This amount is available if you have been a carer for the entire tax year.

The first element is a fixed rate of £10,000.

The Qualifying Amount is made up of two elements: In 2003, HMRC set up a tax scheme for foster carers to simplify the calculation of their taxable income by comparing a ‘Qualifying Amount’ to their total fostering income. You have a choice of methods to calculate your taxable fostering income:

Whether you receive any other income in addition to your fostering incomeĪs a foster parent, you’re in a unique tax position.

if you receive an enhanced fee for one of your placements)

The number and age of children in your care at any one time.

There are a number of things that can affect your tax liability including:

FOSTERING FINANCES FULL

The date you register from should be the date that you were approved at panel, as this will allow you to claim the full amount of allowances that you are entitled to.You will also need to make sure you pay any tax liability due by 31 January following the end of the tax year. You will need to ensure that you submit your tax return by 31 October (if you are filing by paper) or by 31 January (if you are filing online) following the end of the tax year.You will then be asked to complete a tax return on an annual basis for the period 6 April to 5 April.

FOSTERING FINANCES REGISTRATION

Once you have completed the registration you will be sent a unique tax reference (UTR).Registering online using HMRC’s website gov.uk.Completing a paper form CWF1 by downloading it from HMRC’s website.Registering as Self-Employed is relatively straight forward, and can be done one of two ways:

Fostering finances