Coronavirus Government Income Support For Self-Employed Carers

We have published the details of the Covid-19 support package but given the level of inquiries to our Tax and Benefits advisers, we felt it might be helpful to highlight the key issues and practical implications of the support package and Foster Carers.

REMEMBER ANY MEMBER OF YOUR FOSTER CARERS FAMILY CAN CALL OUR FULLY TRAINED TAX AND BENEFIT ADVISERS FOR HELP AND SUPPORT – CALL 0121 794 2289

  1. The support package pays out a monthly sum which is based on 80% of the average profits of self-employment over the past three years
    Many Foster carers report £Nil profits on their tax returns and therefore will have no entitlement to any refund under the government scheme unless they have second self-employment that makes a taxable profit.
    It is likely to be specialist carers, and those fostering several children who may be eligible for the scheme.
  2. The self-employed carer has to prove that they have been unable to Foster due to the COVID-19 virus
    A foster carer would have to prove that they had to stop fostering due to the virus –this would apply to people over 70 or in a specific vulnerability group who had to stop fostering.
    A foster carer who was not looking after any children when the “lockdown hit “and cannot accept a new looked after the child because of the virus would also be eligible for the scheme.
    The reality of the support package is that it will only be available to a small number of carers (on the basis that they do not have a second profitable source of self-employment).

  3.  The support cannot be applied for –HMRC is currently contacting taxpayers they believe will qualify for the scheme inviting them to claim via the scheme. The initial contact is being made by e-mail
    HMRC are stating that 3 months payment will initially be made to Taxpayers in June
  4.  Although the refund scheme may not apply to your Foster carer  earnings it may apply to your partner or another member of your family –if this is the case they will be contacted by HMRC
  5.  All foster families should be considering their eligibility to Universal Credit at this time

    Regardless of whether a family believes they are eligible for a refund under the scheme, they should be considering a Universal credit application, you can find out more about claiming Universal Credit as a Foster Carer in our Universal Credit For Foster Carers Guide

You can read more about the scheme in our Coronavirus Government Support Scheme Guide