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Allocation of qualifying care allowance

Can couples fostering each claim the full child element of the qualifying care allowance

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Hi all would appreciate some feedback on the following scenario.

Husband and wife are both registered foster carers and receive a joint income for jointly fostering several children. They are not in a partnership but registered for self assessment as individually self employed.

I know the fixed £10,000 part of qualifying care relief is split between them but what about the weekly amount per child. Can each claim the full £250 or £200 per week or does it also have to be split? The only example of husband and wife I can find in HMRC Business Income Manual specifically states that in the example they 'operate a partnership'. Does this mean HMRC expect couples to operate as a partnership in which case the qualifying amount relates to the partnership or can they continue as individuals? If they are able to continue as individuals can they claim the full amounts?

Would appreciate any comments and especially if anyone has had any dealings with HMRC over this matter.

 

 

 

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By Joe Alderson
12th Dec 2019 17:27

As far I am aware, as the allowance is just per child, you would only get the £200 or £250 per week as applicable once and you can then choose to split that between the carers, or if one of them is the main carer allocate everything to that person.

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By GW
12th Dec 2019 18:01

Look at the legislation:
s.809 ITTOIA 2005 - the fixed amount is split equally between all the foster carers in the residence
s. 811 ITTOIA 2005 - the individual amount is per child and goes to the individual providing the care
Children Act 1989 (s.22 for example) refers to placements with individuals rather than couples.

In all the cases I have come across one rather than both of the adults will be appointed as foster carer for a specific child. While they operate as a couple, which one has been allocated each child? I would use that as the basis for splitting the payments and the individual element of the care relief.

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By mervynb
12th Dec 2019 19:33

Thanks for the replies. That agrees with my opinion on the matter but client has presented me with an article from taxation.co.uk from 2008 suggesting that may not be the case so thought I'd better check.

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