{"id":15028,"date":"2022-02-23T10:43:18","date_gmt":"2022-02-23T10:43:18","guid":{"rendered":"https:\/\/taxfix.com\/en-uk\/?p=15028"},"modified":"2026-05-20T08:20:43","modified_gmt":"2026-05-20T07:20:43","slug":"what-taxes-foster-carers-pay","status":"publish","type":"post","link":"https:\/\/taxfix.com\/en-uk\/parents\/what-taxes-foster-carers-pay\/","title":{"rendered":"What taxes do foster carers pay?"},"content":{"rendered":"\n<p>Taxes can be a pain, especially when you\u2019re self employed. Here, we\u2019ll discuss how taxes work for foster carers and give you some tips.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How do foster carers pay tax?<\/h2>\n\n\n\n<p>So, you\u2019ve been approved as a foster carer &#8211; what\u2019s next? When you start to foster, you\u2019ll need to register as self-employed &#8211; even as a family and friends foster carer.&nbsp;<\/p>\n\n\n\n<p>To register as self employed, you\u2019ll need what\u2019s called a UTR number (Unique Taxpayer Reference).&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You can obtain this from the <a href=\"https:\/\/www.gov.uk\/log-in-register-hmrc-online-services\/register\">government website<\/a><\/li>\n\n\n\n<li>Or <a href=\"https:\/\/taxfix.com\/en-uk\/utr-service\/\">we can do it for you<\/a><\/li>\n\n\n\n<li>To register online is super-quick, but then HMRC has to send you the number by post which takes longer<\/li>\n<\/ul>\n\n\n\n<p>This step is super-important! HMRC will charge you if you don\u2019t register as self-employed within 6 months after the end of the tax year in which you begin fostering. <\/p>\n\n\n\n<p>Confusing, we know. But we&#8217;ll explain what we mean!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">When is the tax deadline?<\/h2>\n\n\n<\/div> <!-- .c-body -->\n\n<div class=\"b-highlight-mini m-neutral m-align-left\">\n    <div class=\"b-block-body\">\n        <p><span style=\"font-weight: 400;\">Key dates in the current <\/span><b>2025\/26 tax year \ud83d\udc47<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Deadline<\/b><\/td>\n<td><b>Date<\/b><\/td>\n<td><b>Year<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Tax year starts<\/span><\/td>\n<td><span style=\"font-weight: 400;\">6th April<\/span><\/td>\n<td><span style=\"font-weight: 400;\">2025<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Tax year ends<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5th April<\/span><\/td>\n<td><span style=\"font-weight: 400;\">2026<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Register for self assessment<\/span><\/td>\n<td><span style=\"font-weight: 400;\">5th October<\/span><\/td>\n<td><span style=\"font-weight: 400;\">2026<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Pay tax bill by PAYE salary<\/span><\/td>\n<td><span style=\"font-weight: 400;\">30th December<\/span><\/td>\n<td><span style=\"font-weight: 400;\">2026<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Self assessment deadline<\/span><\/td>\n<td><span style=\"font-weight: 400;\">31st January<\/span><\/td>\n<td><span style=\"font-weight: 400;\">2027<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n    <\/div>\n<\/div> <!-- .b-highlight-mini -->\n\n<div class=\"c-body\">\n\n\n\n\n\n<p>If you miss any of the above deadlines, you may face HMRC\u2019s penalty fees \ud83d\ude31\u00a0<\/p>\n\n\n\n<p>What are these, you ask? Check out our Late Filing Penalty Calculator below to find out more. <\/p>\n\n\n<div data-react=\"tooltip-provider\"><\/div>\n\n    <div class=\"c-block-calculator\">\n\n    <div class=\"c-block-calculator__container\">\n\n\n    <div data-react=\"tax-penalties-calculator\" data-options='{\n        \"useCompact\": 1\n    }'>\n\n        <!-- Default calc code -->\n\n        <div class=\"sc-cxpRKc weftt\"><div class=\"sc-efQUeY ddzLiC\"><div class=\"sc-cTApHj bpVzfk\"><h3 class=\"sc-bBHHQT dRArWW\">Your situation<\/h3><img decoding=\"async\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMzQiIGhlaWdodD0iNzYiIHZpZXdCb3g9IjAgMCAzNCA3NiIgZmlsbD0ibm9uZSIgeG1sbnM9Imh0dHA6Ly93d3cudzMub3JnLzIwMDAvc3ZnIj48cGF0aCBkPSJNMzIuMjUgMzQuOTMzNVYxLjg0OTYxSDIwLjE0OTlDMTcuNzQ5OSA5LjA0OTYxIDExLjA1IDEzLjY0OTYgMS43NSAxNC4xNDk2VjI2Ljk0OTZDNy45NSAyNi45NDk2IDEzLjg0OTkgMjUuMDQ5NiAxNy44NDk5IDIxLjg0OTZWMzQuOTMzNU0xNy44NDk5IDU1LjUxODhWNzQuMDQ5NkgzMi4yNVY1OS40OTQ1VjU1LjUxODgiIHN0cm9rZT0iYmxhY2siIHN0cm9rZS13aWR0aD0iMiIgc3Ryb2tlLWxpbmVjYXA9InJvdW5kIiBzdHJva2UtbGluZWpvaW49InJvdW5kIi8+PC9zdmc+\" alt=\"Outlined number one\" class=\"sc-jObXwK jEieje\"><img decoding=\"async\" src=\"data:image\/svg+xml;base64,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\" alt=\"Image of an arrow\" class=\"sc-dPiKHq finhpR\"><\/div><div class=\"sc-cNKpQo\"><form><div class=\"sc-giYgFv igIeJL\"><div class=\"Form__FormRowTitle-sc-32vt5e-2 coHrqe\">Which tax year is this for?<\/div><div class=\"Form__FormRowItem-sc-32vt5e-3\"><select name=\"taxYear\" width=\"100%\" class=\"Select__Container-sc-c9lp90-0 iTqHPI\"><option value=\"taxYearNone\">Select<\/option><option value=\"taxYear2024\">2024\/25<\/option><option value=\"taxYear2023\">2023\/24<\/option><option value=\"taxYear2022\">2022\/23<\/option><option value=\"taxYear2021\">2021\/22<\/option><option value=\"taxYear2020\">2020\/21<\/option><option value=\"taxYear2019\">2019\/20<\/option><option value=\"taxYear2018\">2018\/19<\/option><option value=\"taxYear2017\">2017\/18<\/option><option value=\"taxYear2016\">2016\/17<\/option><option value=\"taxYear2015\">2015\/16<\/option><option value=\"taxYear2014\">2014\/15<\/option><option value=\"taxYear2013\">2013\/14<\/option><option value=\"taxYear2012\">2012\/13<\/option><\/select><\/div><\/div><\/form><\/div><\/div><div opacity=\"0.6\" class=\"sc-AjmZR iQHsnJ\"><div class=\"sc-khQdMy gTRm\"><h3 class=\"sc-jgrIVw dzhXSR\">Results<\/h3><img decoding=\"async\" src=\"data:image\/svg+xml;base64,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\" alt=\"Outlined number two\" class=\"sc-hUpaWb jkAOjo\"><\/div><div class=\"sc-gSQGeZ dDZEmE\"><ul class=\"sc-ikJzcn cgEyHR\"><div class=\"sc-hiCivh hzJALo\">Choose the tax year<\/div><\/ul><\/div><\/div><\/div>\n\n        <!-- END Default calc code -->\n    <\/div>\n\n\n    <\/div> <!-- .c-container -->\n<\/div> <!-- .c-block-calculator -->\n\n\n\n\n\n<h2 class=\"wp-block-heading\">Worried about filing on time? <\/h2>\n\n\n\n<p>Don\u2019t worry! Follow these tips and you\u2019ll be sure to file on time:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Keep a clear record of your fostering income and expenses, and know what you can claim<\/li>\n\n\n\n<li>Give yourself plenty of time<\/li>\n\n\n\n<li>Or use Taxfix &#8211; we\u2019ll sort it for you for \u00a399, all in<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">What can you claim as a foster carer?<\/h2>\n\n\n\n<p>The government will send you payments every week to help with the costs of fostering. How much you\u2019ll receive depends on a few factors:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The type of foster care<\/li>\n\n\n\n<li>Your skills and experience<\/li>\n\n\n\n<li>The number of children you\u2019re fostering<\/li>\n\n\n\n<li>The needs of the children<\/li>\n<\/ul>\n\n\n\n<p>The base rate of this payment is called the Minimum Weekly Allowance.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How does the Minimum Weekly Allowance work?<\/strong><\/h2>\n\n\n\n<p>As you can see, it\u2019s based on where you live:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><\/td><td>Age 0-2<\/td><td>Age 3-4<\/td><td>Age 5-10<\/td><td>Age 11-15<\/td><td>Age 16-17<\/td><\/tr><tr><td>London<\/td><td>\u00a3198<\/td><td>\u00a3201<\/td><td>\u00a3225<\/td><td>\u00a3257<\/td><td>\u00a3299<\/td><\/tr><tr><td>South East<\/td><td>\u00a3189<\/td><td>\u00a3196<\/td><td>\u00a3216<\/td><td>\u00a3247<\/td><td>\u00a3278<\/td><\/tr><tr><td>Rest of England<\/td><td>\u00a3170<\/td><td>\u00a3176<\/td><td>\u00a3194<\/td><td>\u00a3220<\/td><td>\u00a3258<\/td><\/tr><\/tbody><\/table><figcaption class=\"wp-element-caption\">Figures for 2024\/25<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Claiming benefits as a foster carer<\/h2>\n\n\n\n<p>If you\u2019re claiming any benefits, being a foster carer can affect them. Make sure that you let your employer know that you\u2019re also receiving a foster care allowance.<\/p>\n\n\n\n<p>You might be able to claim:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Disability benefits<\/li>\n\n\n\n<li><a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/carers-allowance\/\">Carer\u2019s Allowance<\/a><\/li>\n<\/ul>\n\n\n\n<p> To learn more about how your benefits might be affected, contact your agency or <a href=\"https:\/\/www.fosterline.info\/\">Fosterline<\/a>. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is Qualifying Care Relief?<\/h2>\n\n\n\n<p>Qualifying Care Relief, also known as Foster Care Relief, is the way the government deals with tax exemptions for foster carers. What this means is you will be able to receive certain payments without having to pay any tax.<\/p>\n\n\n\n<p>You can use it if the children or adults in your care were placed by:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Local authorities<\/li>\n\n\n\n<li>Fostering service providers<\/li>\n\n\n\n<li>Shared lives service providers<\/li>\n\n\n\n<li>Health and social care trusts in Northern Ireland<\/li>\n<\/ul>\n\n\n\n<p>The qualifying amount (the amount you can claim tax-free) is made up of 2 parts:<\/p>\n\n\n<\/div> <!-- .c-body -->\n\n<div class=\"b-columns-mini m-align-left\">\n    <div class=\"b-columns-mini__container\">\n\n        \n        \n        <div class=\"b-columns-mini__item m-mint\">\n                                    \n            <div class=\"b-columns-mini__item-content\">\n                <div class=\"b-block-body\">\n                    <h2 style=\"text-align: center;\">1.<\/h2>\n<p style=\"text-align: center;\"><span style=\"font-weight: 400;\">A weekly amount for each cared for child or adult:<\/span><\/p>\n<table class=\" aligncenter\">\n<tbody>\n<tr>\n<td><b>Age of child<\/b><\/td>\n<td><b>Tax relief<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Under 11<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u00a3375 per child<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">11 or over<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u00a3450 per child<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n                <\/div>\n            <\/div>\n        <\/div>\n\n        \n        \n        <div class=\"b-columns-mini__item m-purple\">\n                                    \n            <div class=\"b-columns-mini__item-content\">\n                <div class=\"b-block-body\">\n                    <h2 style=\"text-align: center;\">2.<\/h2>\n<p style=\"text-align: center;\"><span style=\"font-weight: 400;\">A fixed amount of \u00a318,140 for each household for a full year.<\/span><\/p>\n\n                <\/div>\n            <\/div>\n        <\/div>\n\n        \n        \n    <\/div>\n<\/div> <!-- .b-columns-mini -->\n\n<div class=\"c-body\">\n\n\n\n\n<p>Be aware that if you use Qualifying Care Relief, you can\u2019t claim expenses or capital allowances.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What if there are multiple carers in one household?<\/strong><\/h2>\n\n\n\n<p>If there are multiple carers in one household, you share the fixed sum. <\/p>\n\n\n\n<p>Therefore, to work out the share of the fixed amount you\u2019ll need to:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Count the number of days you\u2019ve been an approved carer<\/li>\n\n\n\n<li>Multiply the number of days by \u00a318,140<\/li>\n\n\n\n<li>Divide the total by 365 (or 366 for a leap year)<\/li>\n<\/ol>\n\n\n<\/div> <!-- .c-body -->\n\n<div class=\"b-highlight-mini m-blue m-align-left\">\n    <div class=\"b-block-body\">\n        <p><!-- wp:paragraph --><\/p>\n<p><strong>Example:<\/strong> Mark is a foster carer. He takes care of one 7 year old for the entire year (52 weeks) and one 12 year old for 8 weeks in the year. The qualifying amount is calculated by adding:<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- wp:list --><\/p>\n<ul>\n<li>Fixed amount of \u00a318,140<\/li>\n<li>First child: \u00a319,500 (\u00a3375 x 52 weeks)<\/li>\n<li>Second child: \u00a33,600 (\u00a3450 x 8 weeks)<\/li>\n<li>Total: \u00a323,100<\/li>\n<\/ul>\n<p><!-- \/wp:list --><\/p>\n\n    <\/div>\n<\/div> <!-- .b-highlight-mini -->\n\n<div class=\"c-body\">\n\n\n\n\n<h2 class=\"wp-block-heading\">Do carers declare 0 income?<\/h2>\n\n\n\n<p>As previously mentioned, you\u2019ll have to let HMRC know about any payments you\u2019ve received because they&#8217;re seen as income. Some types of payments you\u2019ll need to include are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Fostering allowances<\/li>\n\n\n\n<li>Retainer payments<\/li>\n\n\n\n<li>Fee or reward payments<\/li>\n\n\n\n<li>Holiday or birthday allowances<\/li>\n\n\n\n<li><a href=\"https:\/\/taxfix.com\/en-uk\/calculator\/mileage-tax-calculator\/\">Mileage<\/a> or any other expenses<\/li>\n<\/ul>\n\n\n\n<p>There are a few of different scenarios you might encounter, depending on the payments you\u2019ve received. Here are two for you to look through \ud83d\udc47<\/p>\n\n\n<\/div> <!-- .c-body -->\n\n<div class=\"b-columns-mini m-align-left\">\n    <div class=\"b-columns-mini__container\">\n\n        \n        \n        <div class=\"b-columns-mini__item m-yellow\">\n                                    \n            <div class=\"b-columns-mini__item-content\">\n                <div class=\"b-block-body\">\n                    <h3><b>If the total payments you\u2019ve received are <\/b><b>lower<\/b><b> than the qualifying amount:<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">HMRC will treat you as not making a profit or loss for the year, so you don\u2019t pay <\/span><a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/income-tax\/\"><span style=\"font-weight: 400;\">Income Tax<\/span><\/a><span style=\"font-weight: 400;\"> or <\/span><a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/national-insurance\/\"><span style=\"font-weight: 400;\">National Insurance<\/span><\/a><span style=\"font-weight: 400;\"> on your caring income<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Of course, you should still fill in a tax return. Make sure you claim Qualifying Care Relief<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">If you have other income, you will either pay that as normal either <\/span><a href=\"https:\/\/taxfix.com\/en-uk\/the-tax-basics\/should-i-be-paying-paye-tax\/\"><span style=\"font-weight: 400;\">through PAYE <\/span><\/a><span style=\"font-weight: 400;\">or <\/span><a href=\"https:\/\/taxfix.com\/en-uk\/freelance-lifestyle\/who-needs-to-file-a-tax-return\/\"><span style=\"font-weight: 400;\">Self Assessment<\/span><\/a><\/p>\n\n                <\/div>\n            <\/div>\n        <\/div>\n\n        \n        \n        <div class=\"b-columns-mini__item m-yellow\">\n                                    \n            <div class=\"b-columns-mini__item-content\">\n                <div class=\"b-block-body\">\n                    <h3><b>If the total payments you\u2019ve received are <\/b><b>higher<\/b><b> than the qualifying amount?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">There are two methods to tackle this:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The simplified method &#8211; you pay tax on the difference between your qualifying care receipts and qualifying amount<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The profit method &#8211; you pay tax on your total care receipts less any expenses and capital allowances. For this, you\u2019ll have to keep detailed records of your business income and expenses. If you have a loss from an earlier year, you can use the loss against your profits for the year. This means you\u2019ll have less taxable income.<\/span><\/li>\n<\/ol>\n\n                <\/div>\n            <\/div>\n        <\/div>\n\n        \n        \n    <\/div>\n<\/div> <!-- .b-columns-mini -->\n\n<div class=\"c-body\">\n\n","protected":false},"excerpt":{"rendered":"<p>Taxes can be a pain, especially when you\u2019re self employed. Here, we\u2019ll discuss how taxes work for foster carers and give you some tips. How do foster carers pay tax? So, you\u2019ve been approved as a foster carer &#8211; what\u2019s next? When you start to foster, you\u2019ll need to register as self-employed &#8211; even as [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[473],"tags":[348,415],"class_list":["post-15028","post","type-post","status-publish","format-standard","hentry","category-parents","tag-income-tax","tag-tax-return-basics"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What taxes do foster carers pay? &#8211; Taxfix<\/title>\n<meta name=\"description\" content=\"Taxes are a pain - foster care is no exception. What can I claim? What do I have to pay? 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