The Fostering Foundation welcomed foster carers to a Tax and National Insurance workshop in their Tavistock Office. The workshop was provided by The Fostering Network – an organisation which is a great resource for information and help for our foster carers and here at Fostering Foundation we purchase memberships for all of our approved foster families.
We all understand how daunting it is to try and understand Tax and National Insurance contributions particularly for foster carers – so this workshop provided carers with specific information about tax and fostering. All foster carers are treated as self-employed for tax purposes.
There is a specific tax scheme foster carers can use called Qualifying Care Relief. The scheme calculates a generous tax threshold unique to the fostering household and when compared with their total fostering payments, determines if a foster carer has to pay any tax from their fostering or not. For many foster carers their total fostering payments are below their tax threshold and they do not have to pay any tax.
The foster carers who attended found the workshop useful, factual and most importantly provided reassurance about managing their tax and National Insurance. If you are considering becoming a foster carer with The Fostering Foundation we are more than happy to help you with finding out more in regards to the fee you will receive to care for children and young people and how this affects your tax and benefits.
Please don’t be shy to ask the money question – it’s important!