Foster carers tax relief

[angel31dust]

I am not sure if I am the only one who didn't know this but when you start fostering you have to register as self employed. I have just been looking on www.hmrc and found some information about the correct procedure to follow. There is some information about tax relief for fostercarers explaining that you don't have to pay tax on a certain amount of your wage and that you in most cases won't need to fill out a tax return form each year. Also in most cases you won't have to pay nics either. You can claim tax credits for your own children in the usual way as you are working however in the earnings box your wages will only be your profit not the entire payment. This has eased my mind greatly. Changing profession from a full time paid job to a foster parent is scary. But I know it will be so worth it. To do something that you love and to know makes a difference to someone elses life is worth so much more than money.

angel,

yes it was a bit of a surprise to us too when our link worker told us about it - although not as much as the fact we get paid a set weekly fee wither we have a child here or not. We thought that we must have picked her up wrong but apparently not :S

To be honest I have found it really difficult to talk about the financial side of fostering with the social workers, as it was not the reason that we applied for - although they should realise this as until June this year the fee and allowances were low.

I read somewhere else that no one expects the social workers to deal with the children for nothing so why would foster carers be expected to - but for some reason it still seems wrong :S

Really you get a set weekly fee irrelevant of a placement. I have been told I only get a fee when we have a placement. I think it's very important that we all understand the financial implications of our life choices. Yes we are doing it out of choice and it's for the love of doing it ., but unfortunately without money how can we all survive. It's an idealistic point of view some have that we can take children in and fund them ourselves whilst of course not working as we need to be a constant in their lives. It is impossible for a large majority as we are not financially set in life to afford that luxury. So for me and my family I must and will always consider finances no matter how much I want to do something it has to right for us all and it has to work. It shouldn't be a taboo. After all don't the sw get paid for their time too. Thanks for supporting my little voice

i have got an accountany now and he is brill sorts everything out for me nat ins the lot , only £200 a year

angel, yes, we get a set fee of £8000 per year paid in fortnightly instalments, this means that it can be taken into account when applying for mortgages ect as it is a steady income.

The LA were really struggling to find new carers, and they had a lot of carers leaving so changed their fee and allowance structure in June this year.

You are absolutely right about we should all be aware of the financial implications, I know I was/am, being silly not bringing it all up with the link worker.

Jozanna - I can see us doing the same I really need to start looking into it all now!!

I've been visiting the forum for a while, but not posted, but wanted to query the above statement 'whilst of course not working'. i don't think that that is a give. My dh and I have been fostering for over 5 years and we both work full-time (I work in a school). Obviously we can only have school aged children, but it is possible to foster and work!

The statement 'whilst of course not working' you query was meant in a sarcastic phrase, Due to the desire of sw commenting that they would rather their carers where at home all the time. Instead of both foster parents being able to remain in employment. I think you may have misinterpreted me. Sorry for the confusion. I think it's great that you can both work and foster. It's inspirational really and gives me reason to query my sw further on their requirements.

i think it depends what agency you work for mine dont like us to work (suits me)