WTC and self employed Fostering

lovetowinacar

Hello

If self employed as a foster carer with one foster child and working over 35 hours a week but due to way allowances are calculated and relief applied no net income - so profit zero - can working tax credit be claimed?

A second school age child in the household. Neither own child or foster child have any disabilities and foster carer not disabled.

Any advice if WTC can be claimed?

Cheeky_Monkey

I'd be amazed if you could claim Working Tax Credits.

I know that people who foster children are paid a lot of money but I wasn't aware that it was considered a 'job' :eek:

Darksparkle

Foster Carers
A definition of who is considered to be a foster carer can be found at BIM52755.
From 2003/04 there are new income tax arrangements for foster carers, details of which can be found at BIM52765-BIM52775. These will result in many foster carers having no profit and no loss for income tax purposes. However they may still be treated as being in qualifying remunerative work and the number of working hours declared on the form should be accepted.

http://www.hmrc.gov.uk/manuals/tctmanual/TCTM02440.htm

lovetowinacar

Foster carers are not all paid lots of money. If you foster through the local council the allowance is quite low.

It is considered a job and a tough one at that - my friend has done this for several years and has many appointments to attend and lots of paperwork.

lovetowinacar

Darksparkle wrote: »

Foster Carers
A definition of who is considered to be a foster carer can be found at BIM52755.
From 2003/04 there are new income tax arrangements for foster carers, details of which can be found at BIM52765-BIM52775. These will result in many foster carers having no profit and no loss for income tax purposes. However they may still be treated as being in qualifying remunerative work and the number of working hours declared on the form should be accepted.

http://www.hmrc.gov.uk/manuals/tctmanual/TCTM02440.htm

Thank you very much for the information, I will pass it on. :T

NYM

There's some further information here...Further information for Foster Carers..

Housing_Benefit_Officer

lovetowinacar wrote: »

Foster carers are not all paid lots of money. If you foster through the local council the allowance is quite low.

It is considered a job and a tough one at that - my friend has done this for several years and has many appointments to attend and lots of paperwork.

Rubbish - the allowances can be very generous.

http://www.edinburghfostering.org.uk/foster-with-us/carer-finance/carer-allowances-and-fees/

https://www.westsussex.gov.uk/education-children-and-families/adoption-and-fostering/become-a-foster-carer/foster-care-allowances/

lovetowinacar

Many thanks for the helpful information, I have printed off and will pass on. I was very concerned when she said she was attempting to survive on her allowance and her part time job and thought there must be some help for her as well.

I personally think my friend works very hard in part time paid employment and also providing a home for a vulnerable and disadvantaged child.

lovetowinacar

Housing_Benefit_Officer wrote: »

Rubbish - the allowances can be very generous.

http://www.edinburghfostering.org.uk/foster-with-us/carer-finance/carer-allowances-and-fees/

https://www.westsussex.gov.uk/education-children-and-families/adoption-and-fostering/become-a-foster-carer/foster-care-allowances/

I can only go on what I am told and the rate for a child without disability isn't very generous considering she cares for the child as she cares for her own and is responsible for 7 days a week and 24 hours a day - a very small hourly rate and I cannot imagine hoards of people rushing out to do it - has a massive impact on her life but she enjoys providing a caring and safe home to a child who wasn't so lucky in his own home

Personally I think she does a good job and glad everyone isn't as scathing as you.

ThumbRemote

Housing_Benefit_Officer wrote: »

Rubbish - the allowances can be very generous.

http://www.edinburghfostering.org.uk/foster-with-us/carer-finance/carer-allowances-and-fees/

https://www.westsussex.gov.uk/education-children-and-families/adoption-and-fostering/become-a-foster-carer/foster-care-allowances/

You must have a dreadful job if you think those allowances (out of which all the costs of raising a child have to be paid) are 'very generous'.

Housing_Benefit_Officer

ThumbRemote wrote: »

You must have a dreadful job if you think those allowances (out of which all the costs of raising a child have to be paid) are 'very generous'.

But the fees are generous - far more generous than the benefits paid out for someone's own children via Child Benefit and Child Tax Credit.

When you consider that Fostering allowance, adoption allowance and special guardianship payments paid by local authorities or voluntary organisations are not counted as income when calculating Housing Benefit or Council Tax Reduction.