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Re:Support for Foster Carers

11/04/2019 11:48:04
Hi barrysutton,

If you are using the cash basis of accounting then you will declare the payments when received.

If using the traditional method you will declare the income for the period this relates to.

Guidance is available here:

HS222 How to calculate your taxable profits (2019)

The qualifying care relief will be calculated based on the tax year and guidance for this is available here:

HS236 Qualifying care relief: foster carers, adult placement carers, kinship carers and staying put carers (2019)

Thanks for your question.

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Support for Foster Carers

15/04/2019 07:03:28
Hi, I am trying to complete my Tax return and I am using the simplified method - qualifying amount.

My question is do I include items that have been reimbursed to me for example when I have paid for say a wardrobe using some of the allowance and then put receipt into the Fostering service, they then give me that money back, into the turnover (Payments Received) ?

I am being told no as that would not make sense as effectively I could be in effect taxed on the initial receiving of the allowance and then the receipt reimbursement .

Thanks.
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Re:Support for Foster Carers

15/04/2019 08:42:45
Hi Zealot 365

If you are a Foster Carer using the simplified method then you will pay tax on your actual receipts/income from caring minus your qualifying amount. If you use this method you cannot take into account any expenses/outgoings or capital allowances. For example if your total receipts/income is £40,000 and the qualifying amount is £25000 then you will take one away from the other and you would be subject to tax on the balance of £15,000. If your total receipts/income are £20,000 and the qualifying amount is £25,000 then your total receipts/income are less than the qualifying amount and you would then be exempt from tax. The help sheet that my colleague provided you with does provide some examples. Please also refer to the following link which will provide the criteria for qualifying care relief in more detail
BIM 52753

Would you be interested in helping us improve the Forum? We are looking for volunteers to spend some time speaking with our research team. If you think you could help us, please click the link below for more information and to register your interest:
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We look forward to hearing from you.
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Support for Foster Carers

15/04/2019 08:56:08
I am none the wiser ! Your reply is not that helpful in just directing me off to a bunch of hmrc leaflets. The whole idea of a forum is to be able to get an answer to a question.
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Re:Support for Foster Carers

15/04/2019 13:24:55
Hi,

Regarding the comment above.

We are sorry you feel the reply you received wasn't helpful.

We do try to give links to specific rather than generic pieces of guidance. However, if you would like to clarify which part you feel wasn't answered we can review this and try to give you further advice and guidance.

This message was edited 1 time. Last update was at 15/04/2019 13:51:52

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Support for Foster Carers

02/05/2019 07:04:57
Hello
I have just become approved as a foster carer and trying to register as self-employed. I have been advised I can register in writing by filling in a form CWF1 – (this form is designed to be filled in on screen. You cannot save the form but once you have completed it you will be able to print a copy and post it.)

is this information correct? when I have looked this up on the internet it says the CWF1 is for people who have sent a tax return online before.

thanks
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Re:Support for Foster Carers

02/05/2019 09:07:59
Hi,

Thanks for your question.

The CWF1 form is only for people who have never registered for self-employment before so it is the correct form for you if you haven’t registered for Self Assessment previously.

I hope this helps.
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Re:Support for Foster Carers

08/05/2019 06:37:23
Hello
Is there a set down list of allowable deductions if not using the simplified method for foster carers but using the income less outgoings method?

For example:
Mortgage payments?
Council tax?
Food?
Activities?
Clothing?

How much/what percentage/ etc etc

Thanks
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Re:Support for Foster Carers

08/05/2019 08:43:48
Hi.

As you are using the profit method you will pay tax on your actual caring receipts minus any expenses.

Please refer to the following links in respect of self employment expenses:

Expenses if you're self-employed

Business Income Manual 37910

Business Income Manual 47810

Business Income Manual 47815

Business Income Manual 47820

Qualifying care relief for carers: HS236 Self Assessment helpsheet

Business Income Manual 70030
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Support for Foster Carers

29/05/2019 09:29:09
hi
I would like to know if I can use the £10,000 twice if there are two different types of arrangement taking place within the household?
My husband is a full-time foster carer and I (his wife) am going to be a shared lives carer. I know qualifying care relief covers both types of arrangement but would like to know if my husband can have £10,000 for his fostering and can I also have £10,000 for my shared lives caring?

Thanks
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Re:Support for Foster Carers

29/05/2019 11:48:44
Hi,

The qualifying care relief is per 'residence' not per individual.

It does not provide for there being 2 separate arrangements taking place within the household.

I have given you a link to our business income manual which specifies this and also the HS236 Qualifying Care Relief helpsheet which also confirms this in the section headed The Fixed Amount

Business Income Manual 52765

Qualifying care relief for carers: HS236 Self Assessment helpsheet

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Support for Foster Carers

05/06/2019 13:07:54
Good Afternoon

Could you tell me if HMRC still run the webinars for foster carers? a friend of mine, who is also a foster carer, registered for a webinar for foster carers some time ago. She said it was a 'live' presentation which she sat at her computer at home. She said HMRC did a webinar about once a month. I have tried looking but can't find anything, only a link to the e-learning package for foster carers.


thanks
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Re:Support for Foster Carers

05/06/2019 13:22:31
Hi there,

Thanks for your question.

Sorry, HMRC no longer run specific webinars for foster carers.

We have links to guidance for foster carers in the first post of this thread.

We are happy to answer any questions you may have about HMRC and foster carers here. You can also see what others have been asking.

Thank you.
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Support for Foster Carers

05/06/2019 13:53:44
Good Afternoon
Myself and my husband both foster. I foster full-time and my husband works full-time for a company. My husband pays tax and national insurance through his employer.
From the information I have read about entering into a partnership, I have interpreted this as being optional. We don't really want to enter into a partnership because there is no financial benefit of my husband being self-employed for the fostering because his personal tax allowance is already used up in his employment.
So, my question is, is it alright for myself to be the one who registers as self-employed for fostering, given that I am the full-time foster carer. Is it alright if we don't enter into a partnership?

Thanks
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Re:Support for Foster Carers

06/06/2019 06:47:11
Hi,

Thanks for your question.

As far as HMRC are concerned where your fostering income is paid by the authority under both names as you are both householders, if only one of you is the main carer that individual can register as the self-employed foster carer.

If you take on the main caring duties then you can declare this as being your income, taking into account the qualifying care relief. This would not then need to affect your husband's status.
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Support for Foster Carers

14/06/2019 11:25:18
Hi, can someone out me out on here. Both myself and partner were connected persons foster careers which ended on the 1st April this year, when we decided to go down the SGO route, Do we both have to complete separate tax returns for the fostering money we received in 2018-2019 tax year, and split the income received and qualifying care relief. I have read that we need to form a partnership when completing the tax return, but just want to get this done as quickly and easier as possible and get it out of the way. Thanks

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