Fostering income

Fostering income

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We have our first client who is to receive an income through a private agency for fostering children, we have plenty of experience in tax but this is a new area to us. Have briefly read the notes on the HMRC web site and wonder if anyone has any practical experience in this and has any tips or advice of how HMRC view this. Looking for any pitfalls to avoid. Our client is already registered for self employment.

Thanks in advance.

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By Jekyll and Hyde
07th Nov 2013 13:05

Have dealt with fostering exemption....

...... I both personal and professional involvement with these.

Both, my parents and sister are foster carers and we have applied the foster carer exemptions now for a number of years. HMRC have not queried either tax position at all, so I can conly assume that they are OK with it..

I am not sure there are any pitfalls. Your client should receive a statement of earnings at the end of each tax year and this should state the number of Children/weeks fostered and income earned.

Do a quick calculation to ensure they fall within the foster carer exemption amount and then you can put "Foster Carer" in the business description box and put £0 as the income and profits. Each year I include within additional information that the client are foster carers and that during the year they have met the rules for exemption.

 

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