Foster carer self assessment

Colosolo

Hi,

I wonder if someone could advise. I am a foster carer and normally a friend does my SA for me but sadly passed away suddenly.

I am not sure how to work out the  Qualifying Care Relief amount. 

I foster a child long term and lets say the qualifying amount on my annual tax statement was 50K,  how do I apply the calculation?

I have read it over and over again, and I am still confused.

If anyone could advise that would be greatly appreciated.

Thanks

Dazed_and_C0nfused

Have you seen this?

https://www.gov.uk/government/publications/qualifying-care-relief-foster-carers-adult-placement-carers-kinship-carers-and-staying-put-carers-hs236-self-assessment-helpsheet/hs236-qualifying-care-relief-foster-carers-adult-placement-carers-kinship-carers-and-staying-put-carers-2021

Colosolo

Dazed_and_C0nfused said:

Have you seen this?

https://www.gov.uk/government/publications/qualifying-care-relief-foster-carers-adult-placement-carers-kinship-carers-and-staying-put-carers-hs236-self-assessment-helpsheet/hs236-qualifying-care-relief-foster-carers-adult-placement-carers-kinship-carers-and-staying-put-carers-2021

Thank you so much. I did see something similar to this but not as clear. 

So if I have this right, lets say there are two children aged 6 and 14

I would do 200 x 52 = 10400

250 x 52 = 13000

= 23400

Plus 10,000

= 33400

If the qualifying amount is 50k then I pay tax on £16,600

Is that correct?

I read that fixed tax exemption of up to £19,360. So does that mean I don't pay anything in that example?

[Deleted User]

Colosolo said:

Dazed_and_C0nfused said:

Have you seen this?

https://www.gov.uk/government/publications/qualifying-care-relief-foster-carers-adult-placement-carers-kinship-carers-and-staying-put-carers-hs236-self-assessment-helpsheet/hs236-qualifying-care-relief-foster-carers-adult-placement-carers-kinship-carers-and-staying-put-carers-2021

Thank you so much. I did see something similar to this but not as clear. 

So if I have this right, lets say there are two children aged 6 and 14

I would do 200 x 52 = 10400

250 x 52 = 13000

= 23400

Plus 10,000

= 33400

If the qualifying amount is 50k then I pay tax on £16,600

Is that correct?

I read that fixed tax exemption of up to £19,360. So does that mean I don't pay anything in that example?

It’s a long time since I dealt with foster carers but that seems correct up to the £19360. 

How did you arrive at this figure? Is it up to date? (Not that it matters as it covers the qualifying amount)

https://www.compassfostering.com/faq/foster-carer-tax-benefits/

Colosolo

[Deleted User] said:

Colosolo said:

Dazed_and_C0nfused said:

Have you seen this?

https://www.gov.uk/government/publications/qualifying-care-relief-foster-carers-adult-placement-carers-kinship-carers-and-staying-put-carers-hs236-self-assessment-helpsheet/hs236-qualifying-care-relief-foster-carers-adult-placement-carers-kinship-carers-and-staying-put-carers-2021

Thank you so much. I did see something similar to this but not as clear. 

So if I have this right, lets say there are two children aged 6 and 14

I would do 200 x 52 = 10400

250 x 52 = 13000

= 23400

Plus 10,000

= 33400

If the qualifying amount is 50k then I pay tax on £16,600

Is that correct?

I read that fixed tax exemption of up to £19,360. So does that mean I don't pay anything in that example?

It’s a long time since I dealt with foster carers but that seems correct up to the £19360. 

How did you arrive at this figure? Is it up to date? (Not that it matters as it covers the qualifying amount)

https://www.compassfostering.com/faq/foster-carer-tax-benefits/

Thank you. I got the info the link in the previous reply.

https://www.gov.uk/government/publications/qualifying-care-relief-foster-carers-adult-placement-carers-kinship-carers-and-staying-put-carers-hs236-self-assessment-helpsheet/hs236-qualifying-care-relief-foster-carers-adult-placement-carers-kinship-carers-and-staying-put-carers-2021

Lalewis

The tax relief allowances changed in April 23 i think (we left in April 23 so I've had to Google) but you now get 19360 fixed and 405/ 485 per week. 

https://www.gov.uk/support-for-foster-parents/tax-arrangements

Colosolo

Lalewis said:

The tax relief allowances changed in April 23 i think (we left in April 23 so I've had to Google) but you now get 19360 fixed and 405/ 485 per week. 

https://www.gov.uk/support-for-foster-parents/tax-arrangementsLalewis said:

The tax relief allowances changed in April 23 i think (we left in April 23 so I've had to Google) but you now get 19360 fixed and 405/ 485 per week. 

https://www.gov.uk/support-for-foster-parents/tax-arrangements

Thanks. On the Gov link I posted it says 

• a fixed amount of £10,000 for each household for a full year

So is that now changed to 19360 or is that 10k something different?

Thank you. 

Lalewis

Your link has 2021 at the end of the address so I think it is outdated.  The £10k has now changed to £19k. Note that the weekly amounts have also changed. You shouldn't pay any tax. 

Colosolo

Lalewis said:

Your link has 2021 at the end of the address so I think it is outdated.  The £10k has now changed to £19k. Note that the weekly amounts have also changed. You shouldn't pay any tax. 

Thanks, I filled it out based on that calucualtion but on this page for 2023/24 it has a different amount

https://www.gov.uk/government/publications/qualifying-care-relief-foster-carers-adult-placement-carers-kinship-carers-and-staying-put-carers-hs236-self-assessment-helpsheet/hs236-qualifying-care-relief-foster-carers-adult-placement-carers-kinship-carers-and-staying-put-carers-2024

• a fixed amount of £18,140 for each household for a full year
• a weekly amount for each cared for child or adult:
• £375 for children under 11
• £450 for children aged 11 or over
• £450 for each adult

Then this page  says  https://www.gov.uk/support-for-foster-parents/tax-arrangements

Tax relief

On top of the £19,360 exemption, you also get tax relief for every week (or part week) that a child is in your care. This means you do not usually pay tax on your earnings from foster care, even if they go over £19,360.

Age of child	Tax relief
Under 11	£405 per child
11 or over	£485 per child

I could call them but it takes forever. 

Lalewis

Yes the government links seem very confused! I think that these numbers are right and that they were increased by inflation for 24/25 which is what the higher numbers are, but I'm not certain. 

https://www.gov.uk/government/publications/qualifying-care-relief-foster-carers-adult-placement-carers-kinship-carers-and-staying-put-carers-hs236-self-assessment-helpsheet/hs236-qualifying-care-relief-foster-carers-adult-placement-carers-kinship-carers-and-staying-put-carers-2024

• a fixed amount of £18,140 for each household for a full year
• a weekly amount for each cared for child or adult:
• £375 for children under 11
• £450 for children aged 11 or over
• £450 for each adult

Then this page  says  https://www.gov.uk/support-for-foster-parents/tax-arrangements

Are you a member of fostering network? Is there anything on their website or you could call them?

sheramber

Figures for 24/25. https://www.litrg.org.uk/working/self-employment/foster-carers-and-shared-lives-carers/qualifying-care-relief#:~:text=2024%2F25%20tax%20year,child%20under%20age%2011%2C%20and