For tax purposes Foster Carers are treated as self employed and are required to submit a Self Assessment tax return each year.
There is a specific tax scheme foster carers can use called qualifying care relief. The scheme calculates a tax threshold unique to the fostering household which determines if a foster carer has to pay any tax from their fostering.
Deductions from total care receipts include:
- £10,000 per household.
- An additional weekly amount per child/adult cared for.
We can prepare your Self Assessment Tax Returns call us on (020) 8367 7319