Tax Credits

[TulipsfromAmsterdam]

Can anyone advise on tax credits and hours worked for foster carers? Currently we get the minimum child tax credit and I don't expect this to change.
When I called Tax Credit helpline to let them know I had left my previous job to become a foster carer for LA they wanted to know how many hours per week I worked! She then suggested putting it down as 30 per week. When I spoke to my SSW she thought I should tell them it is a voluntary role and payment is mainly expenses so hoping someone here can tell me how they have managed to sort this.

You can claim WTC but not CTC for being a foster carer. Fostering is classed as 'qualifying employment'.

You need to tell them you are Self Employed and earn £0 (unless you receive loads of money from an IFA !!) - it is a tax benefit that we can state we earn nothing from fostering. There is some rule about the total amount 'received' having to be less than £25k pa.

As for the number of hours, I stated I work 30 - as any more has no bearing on the amount you will receive - I think the qualifying number of hours is 16 but I'm sure I read somewhere this was going to increase.

Any other sources of income will be taken into account (e.g. paid employment, private pension etc) before they calculate what you are entitled to.

Our LA frequently run tax briefing sessions when they get someone in from the Inland Revenue to come and explain it in easy steps.. so I think (?) I'm quite up-to-date...

Hope that helps...

Thanks buster, so for example if you say you work 20 hours rather than 30, would you get less?

You would probably get less. Why would you say 20hrs? Say more because you will certainly be doing more! If you have your own children your child tax credit may go up because your income will be right down iyswim.

Hi

I was advised by their helpline that it would be classed as Full-time and therefore would be entitled to full rate.

I think they've recently banded it... so if you work 16-29 you get one rate, and 30+ you get a higher rate...

I'm sure by EU standards we 'work' too many hours tho

Thanks to everyone for the replies. Think it is best to leave it at 30 hours but will have to ring when new application pack arrives to let them know my expected income will be less than when I was working. Sure I will get it sorted in the end.
Thanks again

You put your income as zero, as long as you won't pay tax on your projected "earnings" even if you work for an IFA, this is possible as the tax allowance is so high. It's on the inland revenue site somewhere.

As your are self employed and registered as such I think your SSW is wrong- it is not voluntary; you are liable for tax and NI.

As a foster carer you can apply for exemption from NI contributions and you will receive credits so you can still receive your government pension ( if it still exists when we retire lol). You can also apply for an exemption under low earnings rule http://www.hmrc.gov.uk/forms/cf10.pdf

You need to download and complete form CF411A www.hmrc.gov.uk/forms/cf411a-notes.pdf

Hope that helps :)