Foster Carers

Foster Carers

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I have been approached by a lady who is a foster carer and paid by her local council for doing this with no tax/NI deducted and been doing this since 2005.
Does anybody know if she will be classed as self employed and therefore should have registered 3 years ago and if so, what sort of expenses etc could she claim.
This is a new one to me and any advice/ help would be gratefully appreciated.
Diane

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By coolmanwithbeard
05th Nov 2008 15:11

Foster Carers
Foster carers are SE for tax purposes

If an SA return is due you must complete a S/E page - but you can tick the special circumstances box (Box 12) the helpsheet tells you where to put the zero (assuming the income is not taxable). Most local authority carers will not receive more than the allowable amount. THere is no distinction between boarding out and fee here it is the total that counts.

See also http://www.hmrc.gov.uk/manuals/bimmanual/BIM52765.htm

Don't forget that for NI purposes HRP can be claimed

Mike

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By rboggon.yahoo.co.uk
04th Nov 2008 17:53

Depends on number and ages of children
Each child qualifies for various allowances depending on age, disability etc.
If this allowance is below the taxable threshold (see HMRC helpsheet) then this is the tax free amount the foster carer need not report on tax return. Anything over then report as income.

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By pauld
04th Nov 2008 16:23

helpsheet available............
Inland revenue helpsheet HS 236 will guide you, you can find this on their website.

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