fostering and tax credits !!

kurjam

hi can someone give me any info or tell me if they have this sort of situation....
i am looking into fostering babies, how would this affect my tax credits.
i realize i would not get child tax credit as i would get a weekly payment off the local authority but saw this on tax credit website ....
(((( I am a foster carer. Do I qualify for tax credits?
You cannot claim the Child Tax Credit for a child or young person that you are fostering. You can claim Working Tax Credit if you get paid for fostering and you work the required number of hours.))))

what do they class as the qualifying number of hours ??
if i have a baby in my care 24/7 then am i classed as doing over 16 hours ??
would i also have to give up my incapacity benefit as would they see fostering as a full time job??
as my local authoruty pay £120 a week to foster parents...

any help appreciated !!

:grouphug:

Oldernotwiser

When you're a foster parent you receive a fostering allowance which is supposed to cover your costs of caring for the child. This does not count as income because it's spent directly on the child and it's not taxed. With some placements, particularly for the more challenging children, you could receive a professional foster parent parent which would be classed as income and, therefore, taxed. I would think that these different types of payment would be relevant for WTC as well, but I'm not certain.

I would think from the information you've given that the £120 is a fostering allowance but it would be a good idea to check. You might also find this factsheet useful.

http://www.cpag.org.uk/cro/tax-credits/foster_carers_tax_credits.htm

kurjam

yesit is a fostering allowance, would this affect my incapacity benefit at all ??

janeawej

have you looked into fostering with a private agency as they often pay better and give better support thatn local authorities? although you will be caring for much more challenging children or those with special needs.

Oldernotwiser

janeawej wrote:

have you looked into fostering with a private agency as they often pay better and give better support thatn local authorities? although you will be caring for much more challenging children or those with special needs.

You're right but this will then include a professional fostering amount (ie pay) that is like to affect benefits.

specs_3

kurjam wrote:

yesit is a fostering allowance, would this affect my incapacity benefit at all ??

Call the DWP, they would give a defintive answer.

seven-day-weekend

kurjam wrote:

yesit is a fostering allowance, would this affect my incapacity benefit at all ??

I don't think the Income would affect your IB, but would it be classed as work?

You are allowed to do Permitted Work whilst on IB following certain criteria:


http://www.direct.gov.uk/en/DisabledPeople/FinancialSupport/DG_10020667

I really think you need to clarify this position before doing it. Ask the DWP.

kurjam

i will give them a ring later in the week !!

kurjam

i rang tax credits apparently if i do foster a child i am classed as self employed !!
but the tax office said because i would only receive a fostering allowance it is not taxable therefore my income is nil,
would tax credits be able to put this on the tax credits award as surely the computer would want to no why my income is nil if i am working ??

Oldernotwiser

If you're only receiving a fostering allowance then you'll be in the same situation as if you're working as a volunteer. The fostering allowance is intended to cover the costs of caring for the child; it's not wages that you're earning.

To give you some idea of what it covers.

http://www.adoption-net.co.uk/howfoster/allowance.htm

kurjam

so if i am classed as working / volenteer can i still claim childcare charges on my tax credits ?? as i am sure i would lose my incapacity benefit if i am working !!
they curently pay for my childcare cost as i am on incapacity benefit and my 2 little ones go to nursery twice so i can have physio....