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.