Tax for foster carers

Foster carers are classed as self-employed, which means that you must complete a tax return every year.

As a self-employed person you need to:

  • Register with HMRC – this is the first step in the tax return process
  • Calculate your earnings from fostering, using HMRC’s special profit rules for foster carers
  • Complete your tax return, including details of all of your income from different sources
  • File your tax return on paper by 31st October, or online by 31st January, for each tax year (which begins on 5th April)

While this may seem relatively straightforward, there are hidden pitfalls. If you do not register, fail to file the tax return, or miss paying your tax on time, you may incur costly penalties.

By using Intellect’s specialist tax service, you can have the peace of mind that all of the relevant paperwork is taken care of for you.

How we can help you

When you use Intellect Tax Services, you simply complete our straightforward questionnaire, and we will do everything else. We will deal with HMRC, complete all the paperwork and keep you up-to-date right through the process.

We will:

  • Register you with HMRC so you don’t need to worry about it
  • Calculate your fostering profits using HMRC’s special rules for foster carers
  • Work out how much tax you have to pay, and when you need to pay it by
  • Claim any additional expenses you might be entitled to
  • Advise you on how to reduce the amount of tax you have to pay by considering a fostering partnership
  • Make sure all documentation is properly filled in and submitted before the deadline
  • Talk to HMRC on your behalf
  • Keep you updated via email throughout the year about how we’re getting on with your tax return

FosterTalk members have access to a discounted rate for our tax service. Find out more at the FosterTalk website.