At Childminder Accountancy Services, we specialise in supporting foster carers with their unique tax requirements, ensuring compliance and maximising the benefits of available tax reliefs.
Tax and Self-Assessment for Foster Carers
Foster carers are classified as self-employed for tax purposes, meaning they are required to submit a Self Assessment tax return annually. However, a specific tax scheme known as Qualifying Care Relief (QCR) is available, providing a unique tax threshold for each fostering household. This often results in little or no taxable income from fostering activities.
Qualifying Care Relief Allowances
Under QCR, foster carers can deduct the following allowances from their total fostering income:
- Fixed Tax-Free Amount: £18,140 per year (subject to annual updates).
- Weekly Allowance Per Placement:
- £375 per week for each child under 11
- £450 per week for each child aged 11 or over
- £450 per week for each adult placement
These allowances significantly reduce taxable income, and in many cases, foster carers have no tax to pay on their fostering income.
How We Can Help
We provide expert assistance in preparing and submitting Self Assessment tax returns, ensuring that all available tax reliefs are applied correctly. Our services include:
- Calculating your Qualifying Care Relief threshold
- Completing and filing your Self Assessment tax return
- Advising on tax-efficient record-keeping
- Ensuring compliance with HMRC regulations
Contact Us
We are here to simplify the tax process so you can focus on what truly matters—providing care and support to those in need. Get in touch with us today for tailored assistance: