Hiya,
I know this has been discussed in another recent thread, but it may have been missed by some.
Please see: www.hmrc.gov.uk/individuals/foster-carers.htm#p
Yes you are entitled to WTC but not CTC.
Yes as they state, you are 'self employed' and therefore should pay s/e NI contributions - else you can get fined - its about £2.40 per week and will entitle you to benefits plus also keeping up your stamp for state pension. As we can state we earn £0 theoretically you could apply for exemption but as they themselves state "Please note that if you qualify for the SEE and choose not to pay Class 2 National Insurance contributions, your entitlement to Incapacity Benefit, Maternity Benefit, State Pension and Bereavement Benefit may be affected"
I have spoken to Fostering Network who seconded this information.
Fostering is qualifying work for WTC and as long as you put down a minimum of 30hrs you will qualify - income received from fostering is £0.
You will then probably have to do a self assessment for your tax return, but apparently if you do it online, there is only about 3 boxes to complete.
I know many people have been told different things and I think it can also depend on who you foster for, if you receive any other income, and what benefits you want to be entitled to (re: NI contributions).
I wish it had been clear for us at the beginning - I've spent many a hour on the phone trying to get to the bottom of it, and then finally our LA put on a briefing and someone from HMRC came & told us exactly what we had to do. They had to admit that even their own staff get confused about fostering!!
Please or to access all these features
Please
or
to access all these features
Here are some suggested organisations that offer expert advice on fostering.
Fostering
Self Employed, WTC etc etc
1 reply
p99gmb · 20/01/2011 14:00
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