Help and support for foster parents in England
Tax arrangements
You should have registered as self-employed when you started to foster. You바카라 사이트™ll need to file tax returns. Check with your fostering service what you need to do.
In your tax return, you바카라 사이트™ll be able to claim:
- a tax exemption of up to £19,690 per household
- tax relief for every week you foster a child
This is known as qualifying care relief.
You may be entitled to National Insurance credits, which count towards your State Pension.
Tax exemption
In a tax year, households do not pay tax on the first £19,690 they earn from fostering. You바카라 사이트™ll still pay tax on money you earn from a job or investment.
Tax relief
On top of the £19,690 exemption, you also get tax relief for every week (or part week) that a child is in your care. This means you do not usually pay tax on your earnings from foster care, even if they go over £19,690.
| Age of child | Tax relief |
|---|---|
| Under 11 | £415 per child |
| 11 or over | £495 per child |
Example
Laura is a foster carer for a 14-year-old for the whole of the year and for an 8-year-old for 10 weeks of the year. She gets:
Tax exemption for the household = £19,690
Tax relief on what she earns for fostering the 14 year old (£495 x 52 weeks) = £25,740
Tax relief on what she earns for fostering the 8 year old (£415 x 10 weeks) = £4,150
Altogether, Laura does not need to pay tax on the first £49,580 she earns from fostering.