At our practice, we understand the unique tax requirements that foster carers face, and we are here to assist you in navigating through the complexities of tax regulations.
For tax purposes, Foster Carers are treated as self-employed individuals, which means they are required to submit a Self Assessment tax return each year. However, there is a specific tax scheme available for foster carers known as qualifying care relief. This scheme calculates a tax threshold that is unique to each fostering household, determining whether a foster carer has to pay any tax from their fostering activities.
At our firm, we specialise in assisting foster carers with their tax obligations and ensuring compliance with the qualifying care relief scheme. Our experienced team is well-versed in the intricacies of foster care taxation and can provide you with expert guidance and support.
When it comes to deductions from total care receipts, foster carers can benefit from the following allowances:
- £10,000 per household: Foster carers can deduct this fixed amount from their total care receipts when calculating their taxable income.
- Additional weekly amount per child/adult cared for: Foster carers are eligible to claim an extra allowance for each child or adult they care for on a weekly basis. This additional amount is deducted from their total care receipts, further reducing their taxable income.
Navigating the tax landscape as a foster carer can be challenging, but our team is here to simplify the process for you. We can prepare your Self Assessment tax returns, ensuring accurate and timely submission to the relevant authorities.
Don’t hesitate to reach out to us for professional assistance with your foster care tax obligations. Our dedicated team is ready to provide personalized support tailored to your specific needs. Contact us today at (020) 8367 7319 to schedule a consultation or to learn more about our services.
Let our accounting firm alleviate the burden of tax compliance so that you can focus on making a positive difference in the lives of those you care for as a foster carer.