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Fostering income - which amounts are taxable?

Which are income for the foster parent, and which are disbursements?

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Client received payment for the following groups - I assume the first 4 are taxable income, but are the rest?

Level payment
Basic maintenance
16+ allowance
Day care
Support/holiday care
Birthday payment
Festival payment
Holiday allowance
Clothing grant
Equipment grant
Travel payments
One-off payments

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16th May 2019 11:01

ugdiv wrote:

I assume

Not the best way to give professional advice.

'I assume' that you haven't tried putting "fostering income HMRC" into Google.

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By ugdiv
to Accountant A
16th May 2019 12:35

OK, the first 4 ARE taxable. And yes I tried google, but results are mainly about allowances rather than income types.

Listed are payments, allowances and grants. Birthday payment for instance, goes to the child, so is not income.

But what about the others?

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By Mitch
16th May 2019 12:54

The taxable amount is the TOTAL payments receievd less the qualifying amount. See HS236 Qualifying Care Relief.

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By suepg
16th May 2019 13:09

Qualifying Care Relief is available.
Providing the TOTAL received is below the threshold, there is no requirement to calculate tax.

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