Foster Carer Tax Relief
As a foster carer you'll be entitled to tax relief on your income from fostering, meaning you'll pay very little (or no) tax and national insurance.
You'll need to register as self-employed and you'll be asked to complete a tax return.
The tax relief you get depends on your own financial circumstances.
Tax exemption
There is a fixed tax exemption of £10,000 per year (less for a shorter period) which is shared equally among any foster carers in the same household. This means you don't have to pay tax on the first £10,000 income you make from fostering.
Tax relief
As well as the tax exemption, you'll also get tax relief for every week (or part week) that a child is in your care. This means you don't have to pay tax on some of your earnings over £10,000.
Support from HM Revenue and Customs
Help and support is available from HM Revenue and Customs, helping foster carers with self-assessment and tax returns, eLearning, live events to enable foster carers to ask questions to a team of experts.