Foster carers are considered self-employed for income tax purposes and can use a simplified method to calculate their tax, called 'qualifying care relief'. They are expected to register as self-employed with HM Revenue and Customs (HMRC), but the simplified method often means foster carers have no tax to pay.
To help you deal with income tax, national insurance and associated finances, we have produced a range of resources to guide you through and you can also contact our advicelines across the UK with your questions. Members of the Fostering Network can log in here to access member resources and peer to peer support in our online community.
HMRC has a free e-learning module for foster carers, with information about self-employent, how to register as self employed, the 'qualifying care relief', record keeping and more. You can find the course here.
The Fostering Network's popular Signpost booklet, which gives guidance on which allowances and payments are taxable, plus advice on National Insurance and completing your tax form. Includes information about Home Responsibilities Protection.
Members of the Fostering Network can log in to download this signpost.
HMRC has a free e-learning module for foster carers, with information about self-employment, how to register as self-employed, the 'qualifying care relief', record keeping and more.
