Tax arrangements when you foster
When you start fostering, you’ll need to register as self-employed and file tax returns.
You’ll also be entitled to qualifying care relief which means you’ll:
- earn £10,000 from fostering before you have to pay tax
- get tax relief for every week you foster a child
Summary of Fostering Allowances & Skills Payments 2020/21
All Foster Carers must register as for Self-Assessment with HMRC. https://www.gov.uk/becoming-foster-parent/help-with-the-cost-of-fostering
Foster Carers Skills Payment
|Foster Carers Skills Payment||Amount|
Mileage – 45 pence per qualifying mile.
Out of County School Meals – Reimbursed at rate paid to the school
Respite/Short-Term Care Rates
Overnight Respite Care
|Age Bandings||Weekly Respite Rate (75% of Fostering Allowance + £140)||1 Night Pro Rata||2 Nights Pro Rata||3 Nights Pro Rata||4 Nights Pro Rata||5 Nights Pro Rata||6 Nights Pro Rata||Full Week|
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Activities Allowance – Disabled Children
£40 per weekend placement
Child Sitting / Day Care
£7.50 per hour
45 pence per mile for the transport of foster child
Carers’ Annual Leave Allowance
For respite – equivalent to a maximum of 2 Weeks Foster Allowance & Skills Payment for qualifying carers.
Out of County School Meals
Reimbursed at rate paid to the school