{"id":37,"date":"2021-01-18T15:26:00","date_gmt":"2021-01-18T15:26:00","guid":{"rendered":"http:\/\/local.care\/?p=140"},"modified":"2021-02-17T17:06:01","modified_gmt":"2021-02-17T17:06:01","slug":"tax-exemption","status":"publish","type":"post","link":"https:\/\/surestartfostering.org.uk\/?p=37","title":{"rendered":"Tax arrangements"},"content":{"rendered":"<blockquote>\n<h3><span style=\"color: #008000;\"><em>Tax arrangements for Fosters &#8211;<\/em><\/span><\/h3>\n<p>You should have <span style=\"color: #ff6600;\"><a style=\"color: #ff6600;\" href=\"https:\/\/www.gov.uk\/log-in-file-self-assessment-tax-return\/register-if-youre-self-employed\">registered as self-employed<\/a><\/span> when you started to foster. You\u2019ll need to file tax returns. Check with your fostering service what you need to do.<\/p>\n<p>In your tax return, you\u2019ll be able to claim:<\/p>\n<ul style=\"list-style-type: square;\">\n<li>A tax exemption of up to \u00a310,000 per household<\/li>\n<li>Tax relief for every week you foster a child<\/li>\n<\/ul>\n<p>This is known as qualifying care relief.<\/p>\n<p>You may be entitled to <span style=\"color: #ff6600;\"><a style=\"color: #ff6600;\" href=\"https:\/\/www.gov.uk\/national-insurance-credits\">National Insurance credits<\/a><\/span>, which count towards your <span style=\"color: #ff6600;\"><a style=\"color: #ff6600;\" href=\"https:\/\/www.gov.uk\/state-pension\">State Pension<\/a>.<\/span><\/p>\n<h2 id=\"tax-exemption\"><em>Tax <span style=\"color: #008000;\">Exemption:<\/span><\/em><\/h2>\n<p>In a tax year, households do not pay tax on the first \u00a310,000 they earn from fostering. You\u2019ll still pay tax on money you earn from a job or investment.<\/p>\n<h2 id=\"tax-relief\"><em><span style=\"color: #ff6600;\"><span style=\"color: #000000;\">Tax<\/span>\u00a0<span style=\"color: #008000;\">Relief:<\/span><\/span><\/em><\/h2>\n<p><span style=\"font-weight: 400;\">You will also benefit from a weekly tax relief while you have a child placed in your care. This Tax relief is on top of the \u00a310,000.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The weekly amount of tax relief is dependent on the age of the foster child in you care.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For each child under the age of 11 in your care, you will benefit from a tax relief of \u00a3200 each week.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For each child aged 11 or over in your care, you will benefit from a tax relief of \u00a3250 each week.<\/span><\/p>\n<h2><span style=\"color: #008000;\"><em><b>Example 1<\/b><\/em><\/span><\/h2>\n<h5><span style=\"color: #ff9900;\"><em><b>Osman fosters full time, he fosters a 15 year old boy, long term so has cared for him for a full year.<\/b><\/em><\/span><\/h5>\n<p><span style=\"font-weight: 400;\">Tax relief\u00a0\u00a310,000<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Tax exemption for 52 weeks at \u00a3250\u00a0\u00a313,000<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Osman&#8217;s total fostering allowance\u00a0\u00a321,000<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Total tax threshold for fostering\u00a0\u00a323,000<\/span><\/p>\n<h5><strong><span style=\"color: #800000;\">Osman receives a fostering allowance of \u00a321,000 which is below the threshold of \u00a323,000, so Osman will not\u00a0be eligible to pay tax.<\/span><\/strong><\/h5>\n<p>\u00a0<\/p>\n<h2><span style=\"color: #008000;\"><b>Example 2<\/b><\/span><\/h2>\n<h5><span style=\"color: #ff6600;\"><b>Anna fosters a 12 year old for a full tax year, but then has a 6 year old alongside for 14 weeks<\/b><b>.<\/b><\/span><\/h5>\n<p><span style=\"font-weight: 400;\">Tax relief\u00a0\u00a310,000<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Tax exemption for 52 weeks at \u00a3250\u00a0\u00a313,000<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Tax exemption for 14 weeks at \u00a3200\u00a0\u00a32,800<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Anna&#8217;s total fostering allowance\u00a0\u00a328,000<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Total tax threshold for fostering\u00a0\u00a325,800<\/span><\/p>\n<p><span style=\"font-weight: 400; color: #800000;\"><b><i>Anna receives a fostering allowance of \u00a328,000. \u00a32,200 of her income is eligible for tax. Anna has no other income other than his fostering allowance, so she has not exceeded her personal tax allowance, which is currently \u00a312,500.\u00a0 So Anna\u00a0will not pay\u00a0any tax.<\/i><\/b><\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0<br \/>Tax depends on your personal circumstances and other sources of income, therefore, we urge all our foster carers to seek expert tax advice from your accountants.<\/span><\/p>\n<p>You can also find information in <span style=\"color: #ff6600;\"><a style=\"color: #ff6600;\" href=\"http:\/\/www.hmrc.gov.uk\/courses\/syob3\/fc\/HTML\/fc_menu.html\" rel=\"external\">HMRC\u2019s online course about tax arrangements for foster parents<\/a>.<\/span><\/p>\n<\/blockquote>\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Tax arrangements for Fosters &#8211; You should have registered as self-employed when you started to foster. You\u2019ll need to file tax returns. Check with your fostering service what you need to do. In your tax return, you\u2019ll be able to claim: A tax exemption of up to \u00a310,000 per household&nbsp;<a href=\"https:\/\/surestartfostering.org.uk\/?p=37\">&hellip;<\/a><\/p>\n","protected":false},"author":1,"featured_media":732,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"_links":{"self":[{"href":"https:\/\/surestartfostering.org.uk\/index.php?rest_route=\/wp\/v2\/posts\/37"}],"collection":[{"href":"https:\/\/surestartfostering.org.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/surestartfostering.org.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/surestartfostering.org.uk\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/surestartfostering.org.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=37"}],"version-history":[{"count":19,"href":"https:\/\/surestartfostering.org.uk\/index.php?rest_route=\/wp\/v2\/posts\/37\/revisions"}],"predecessor-version":[{"id":779,"href":"https:\/\/surestartfostering.org.uk\/index.php?rest_route=\/wp\/v2\/posts\/37\/revisions\/779"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/surestartfostering.org.uk\/index.php?rest_route=\/wp\/v2\/media\/732"}],"wp:attachment":[{"href":"https:\/\/surestartfostering.org.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=37"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/surestartfostering.org.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=37"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/surestartfostering.org.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=37"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}