Fostering fees and allowances
Fostering People provides a competitive fostering fee and allowance so that our foster carers can commit the necessary time and attention to fostering.
Fostering a child or young person requires a wealth of attention, and incurs costs too, so we provide a fostering fee and allowance to cover any costs derived in your time as a foster carer. Your cost of living fostering allowance recognises expenses such as food, clothing, travel, and bills.
The fostering fees and allowance also recognises the step to fostering becoming a highly valued profession. Foster carers receive their fostering fee and allowance once a child or young person is in a placement.
Employment and fostering
Fostering People recognises that fostering a child or young person requires a lot of your time and attention. You cannot expect to manage a full time job and be a professional foster carer; you simply won't have the time or the energy. However, there are exceptions to this. Please contact Fostering People for further information about fostering and your employment circumstances.
Foster carer tax relief
Fostering is classed as a self-employment. As such all foster carers will need to register as self-employed.
Once registered, you will be asked to complete a tax return.
Each carer’s financial circumstances will be different. There are many elements that can affect your tax liability:
- The number of placements you have
- The type of placement you have, for example you may receive an enhanced fee for one of your placements
- Whether you foster with your partner
- Whether you receive any other income as well as your fostering income.
In 2003 HMRC set up a tax scheme for foster carers to simplify the calculation of their taxable income by comparing a ‘Qualifying Amount’ to their total fostering income.
Due to the generous tax relief provided by HM Revenue & Customs foster carers pay very little (if any) tax and national insurance.
Please see our Becoming a Foster Carer – The Finances Booklet for further information or contact 0844 800 3880 to speak to a Tax Advisor.
WE STRONGLY RECOMMEND THAT YOU PUT AN APPROPRIATE AMOUNT OF MONEY ASIDE TO HELP YOU IN PERIODS OF NON-PLACEMENT AND TO BE PREPARED FOR ANY TAX YOU MAY BE DUE TO PAY.
CONTACT 0844 800 3880 TO SPEAK TO A TAX ADVISOR.