income tax/national insurance

Tax FAQs

Frequently Asked Questions

Do foster carers need to pay tax?
It will depend on a number of factors, including the total amount of fostering payments you receive and if you have taxable income from another source such as work or a pension.  However the majority of foster carers do not pay tax on their fostering payments. All foster carers need to register with HM Revenue and Customs and complete an annual tax return, even if you do not need to pay tax on your fostering payments.

Wed, 06/19/2019 - 09:28 By Harriet Lewis on June,19th 2019

Tax and national insurance contributions

Registering as ‘self-employed’ with HMRC

Since April 2003, all foster carers have been treated as self-employed (including foster carers who provide respite care and family and friends foster carers). At this time, HM Revenue and Customs (HMRC) introduced a specific tax scheme for foster carers known as 'foster care relief'. In April 2010, foster care relief was extended and renamed ‘qualifying care relief’.

Fri, 01/08/2016 - 11:33 By admin on January,8th 2016