foster carer and tax credits.
Options
Comments
-
Hi, yes I explained all that to the tax advisor however even with my tax allowances i have made a profit every yr, she would not accept this saying it didnt matter how many children i fostered at 1 time i couldnt make a profit from fostering. and i was to put nil. i think im going to see a tax advisor i am worried sick about it,
thanks every one for answering.0 -
gorryworry wrote: »Hi, yes I explained all that to the tax advisor however even with my tax allowances i have made a profit every yr, she would not accept this saying it didnt matter how many children i fostered at 1 time i couldnt make a profit from fostering. and i was to put nil. i think im going to see a tax advisor i am worried sick about it,
thanks every one for answering.
The tax credit rules follow tax. If you have a profit for tax then you have a profit for tax credits.
That is what the links provided above say. In most of the cases I come across foster carers don't make any profit for tax purposes and so tax credits will be nil but there isn't a rule that says all foster carers declare nil for tax credits.
IQ0 -
gorryworry wrote: »Hi, yes I explained all that to the tax advisor however even with my tax allowances i have made a profit every yr, she would not accept this saying it didnt matter how many children i fostered at 1 time i couldnt make a profit from fostering. and i was to put nil. i think im going to see a tax advisor i am worried sick about it,
thanks every one for answering.
How much do you make from fostering?0 -
We were registered for 4 all above 11 years. We nearly always had more counting a pace bed and never paid any tax and got full tax credits. When we retired all our returns were checked by HMRC and we owed nothing.gorryworry wrote: »thankyou CCL. they have always told me its nil earnings regardless of the amount of chidren i foster. its all so confusing .
I agree it's confusing but we went with the advice and info provided by the tax & tax credits and it was all above board.0 -
If the OP gets a payment of more than the stated £200/£250 she may exceed the tax free allowance and would be taxed on the extra but it would have to be a very large payment.
With 3 children she would have a tax free amount of £16,000
To exceed that she would have to get a payment of more than 16,000 / 3.
Unless the OP tells us what amount she gets we cannot help her anymore0 -
If the OP gets a payment of more than the stated £200/£250 she may exceed the tax free allowance and would be taxed on the extra but it would have to be a very large payment.
With 3 children she would have a tax free amount of £16,000
To exceed that she would have to get a payment of more than 16,000 / 3.
Unless the OP tells us what amount she gets we cannot help her anymore
Why only £16k? It's £10,000 plus £200/£250 per week per child.0 -
I had 15000 profit. average. because I foster 3 children. so I should have been declaring that as my income but was told no I was to put nil income as im a foster carer.
Im speaking to a tax advisor next week.0 -
gorryworry wrote: »I had 15000 profit. average. because I foster 3 children. so I should have been declaring that as my income but was told no I was to put nil income as im a foster carer.
Im speaking to a tax advisor next week.
So you're receiving over £50k a year for fostering?0 -
depends how many children i.m looking after thats not all income for me thats split between income to spend on the children and fee for us.0
-
gorryworry wrote: »I had 15000 profit. average. because I foster 3 children. so I should have been declaring that as my income but was told no I was to put nil income as im a foster carer.
Im speaking to a tax advisor next week.
You need to do a data protection request and get copies of those phone call recordings as you will need to dispute any overpayment that arises due to the incorrect advice.
IQ0
This discussion has been closed.
Categories
- All Categories
- 343.2K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608.1K Mortgages, Homes & Bills
- 173.1K Life & Family
- 247.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards