As a foster carer, you’re not just entitled to competitive allowances and fees. You’ll also be entitled to other benefits including tax relief.
These are all designed to make your life as a foster carer as simple as possible. We understand that fostering isn’t always a walk in the park. That’s why we offer you all the support you need to help you become the best foster carer you can be.
Tax information for foster carers
When you foster with us, you’ll be classed as self-employed. This means you’ll be entitled to tax relief on your fostering income and you’ll pay very little, or no, tax and national insurance. The tax relief you’ll receive depends on your financial circumstances and you’ll still need to complete a tax return
Tax exemption and relief
There is a fixed tax exemption of £10,000 per year. This means you don’t have to pay tax on the first £10,000 you earn through fostering. You may also be able to receive tax breaks on earnings over £10,000.
To find out more and for help with completing your tax returns, please speak to our dedicated tax advisors on 0844 800 3880.
Benefits and tax credits
When you foster with us, you’ll be pleased to learn that you won’t lose any existing benefits.
You’ll still be able to claim Child Tax Credit for your own children. You’ll also still be eligible for National Insurance Credits, which count towards your basic state pension. Depending on your circumstances, you may also be eligible for Working Tax Credit.
To find out more about foster carer benefits and tax, give us a call on 0844 800 3880.