Hi Guys & Gals,
A friend has asked me for some help and there queries have left me a little confused!
They have recently ended up as Foster carers for a young family member (teenager). They both work and pay tax through the usual PAYE. As foster carers they now receive foster carers allowance and are trying to find out how this will affect their tax.
From what I can see on the thoroughly clear and easily understandable gov.uk website (!) it seems that they get up to £10,000 tax relief on their fosterers allowance which is in addition to their £10K personal allowance AND they get tax relief for an additional £250per week. So taking the foster "income" (assuming it is over the £10K) and the PAYE type income my friend can claim up to £33,000 tax free for the year. Can anyone confirm that this is correct?
The other question was how to calculate the costs of the foster care. How do you assess the additional cost of someone living in your house?
Any help and advice would be hugely appreciated.