Fostering and Tax

aceunlimited

I work 14 hours per week for a company and am PAYE. I've recently qualified as a Foster Carer and take in my first placement this week for 2 days and nights. I will be on a self employed basis. Should I get and Accountant and how should I declare and pay tax? Any advice welcome

Helen_from_yorkshire

I believed that allowances paid to foster carers were for the child's basic needs and not a wage for the carer. If this is the case, as the payments are not income, no tax will be due.

Your linkworker should be able to advise further.

WHA

Have a look at the IR website - they have a section dealing with this:-

http://www.hmrc.gov.uk/individuals/foster-carers.htm

It looks like the income will be exempt from tax as long as it stays below their thresholds.