Short Break Foster - tax free?

SharonSimpson

Hi
Looking for advice. I do short break fostering one weekend a month and have a full time job £19500 a year. I’ve completed a self assessment and I was under the impression it was tax free? I’ve a tax bill coming off in Jan for £380!

Have I done something wrong on the assessment or do I have to pay tax as a second income?

I’ve looked for help and most of the info if for full time care

Help advice would be much appreciated

Thanks

Dazed_and_confused

Why were you completing a Self Assessment return in the first place?

calcotti

https://www.gov.uk/foster-carers/help-with-the-cost-of-fostering

There appears to be a specific tax free allowance.

Without knowing all the details of your tax return it's impossible to know how the £380 tax bill has been created.

SharonSimpson

As a foster carer you have to declare it as a second income. Apply for a URN and declare your income - just a pain when not that minded in that way. Not got a clue

Dazed_and_confused

If you have to declare it on a tax return then why would you think it was tax free

calcotti

Dazed_and_confused wrote: »

If you have to declare it on a tax return then why would you think it was tax free

From the link I posted earlier there appears to be a £10,000 disregard plus a weekly disregard so for many foster carers the income will be tax free. However the OP hasn't provided enough information to know whether this is an HMRC error or whether the tax liability has been correctly calculated based on the totality of her circumstances.