Author Message
HMRC ADMIN 2
Subject: 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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barrysutton
Subject: Support for Foster Carers 11/04/2019 08:38:53
my last payment in financial year2018/19 was march 25th and it included payment for fostering up to that date. The children remained with me until beyond april 5th and i will receive payment for 26/3 to 5/4 in a payment on april 17th which is obviously in 2019/20. Instead of doing detailed income and expenditure I just use the simplifired weekly allowance system

When calculating my income do I

a just use income to march 25 and weekly (daily ?) allowance to that date (effectively treating things as if tax year ended 25/3)
b just use income to march 25 but use allowances to april 5th
c allocate some of april payment (received in 2019/20) as income for 26/3 to 5/4 and also set off allowances for same period.

Providing I do same each year it would seem no harm done but as this is my first full year I would appreciate how best to do this.

HMRC Admin 50
Subject: Re:Support for Foster Carers 29/01/2019 09:29:01
Hi,

Thanks for your question.

If you are a registered Foster Carer with a Local Authority then they will be able to confirm your contract and they will be able to provide the information to help you decide if you meet the criteria under the scheme to register as self-employed and if you meet the criteria for the qualifying care relief.

We can only clarify the taxation side depending on what scheme you fall into. Is your contract under the Supported Lodgings Scheme? You may qualify for the qualifying care relief, however if you do not qualify then the normal tax rules apply and you would declare your income and claim relief on your actual allowable expenses.

Alternatively providers of supported lodgings who do not qualify for qualifying care relief may choose to use the Rent a Room Scheme. To assist you further please refer to the following links;

Qualifying care relief for carers: HS236 Self Assessment helpsheet

Business Income Manual - BIM52755

Business Income Manual - BIM52758

Rent-a-Room Scheme: HS223 Self Assessment helpsheet

There are different types of schemes as a foster carer and this is what you need to establish with the Local Authority.
Anonymous
Subject: Support for Foster Carers 29/01/2019 07:43:01
Hello

I am supporting foster carers who are approved to provide short breaks to families of children with disabilities. On occasions these short breaks can involve overnight stays, but more frequently they involve the child/ren spending several hours in the carers’ home during the daytime, and returning home at night.

• We would like advice as to whether these short breaks carers are required to register as self-employed foster carers, and if so, how do they calculate their qualifying threshold and account for the payments where there is no overnight stay?

• Additionally where mainstream foster carers who are registered as self-employed provide care on a day basis via the short breaks through disability how do they calculate their tax threshold to accommodate the day placements?

• If a foster carer provides more than one overnight placement in a week do they count each placement as one week for tax purposes eg a child from Monday to Wednesday and a different child from Friday to Sunday?


Thanks so much & look forward to hearing from you.
HMRC Admin 50
Subject: Re:Support for Foster Carers 09/11/2018 11:01:39
Hi,

Thanks for your question.

In this circumstance you will be correct in your opinion. The qualifying care relief is given for every week or part of a week in which a child/young person is placed with the carer - so even if they are only there for 1 or 2 days in a week, the full relief is given.

In this instance although there is a payment, there is no child - so no additional expense to the carer. At the end of the year the carer may find that their QCR does cover their payments as there is still the basic £10,000 due.

I hope this helps.
Anonymous
Subject: Support for Foster Carers 09/11/2018 08:18:18
Hi
Please can you help. If a foster carer is paid a sum of money to reserve a room for a child while they wait for the placement to commence can they add the corresponding number of weeks (£200 or £250/wk/child) to their qualifying amount?

I have read up about QCR and my impression is it's a 'no' because the child had not yet been formally placed with them.

So their fostering payments increase but their tax threshold does not?

any help appreciated, thanks
HMRC Admin 50
Subject: Re:Support for Foster Carers 02/11/2018 09:57:25
Hi,

Thanks for your question.

Yes this additional amount is included in her earnings. The earnings she had from the school would be counted in with her taxable income so the additional foster caring income is no different. She will be able to claim qualifying care relief for her fostering time.

The information is all included within our HS236 helpsheet on gov.uk.

I hope this helps.
Anonymous
Subject: Re:Support for Foster Carers 02/11/2018 09:37:09
Hi
Please could you advise on the following scenario?
A foster carer works part time in a school and has a placement of a young boy. The's boy's needs are such that he requires full-time care. The foster carer is asked by the fostering service provider to give up their work in the school in order to care for him full time. To compensate for the loss of earnings, the fostering service agrees to pay the foster carer an amount (on top of her regular fostering allowance and fee) equal to the lost earnings from the school. The amount paid is equal to what she would have earned from the school after tax.
Is this additional amount included in her turnover?
Thanks
HMRC ADMIN 13
Subject: Re:Support for Foster Carers 03/10/2018 13:17:43
Yes, you would include this payment in with your fostering income. If this then takes you over your qualifying care relief, you do have the option of claiming actual expenses incurred instead of the qualifying care relief if this is more beneficial to you. I have given you a link here to our helpsheet on qualifying care relief in case you have not referred to this before:

Qualifying care relief for carers: HS236 Self Assessment helpsheet
Anonymous
Subject: Support for Foster Carers 03/10/2018 12:01:38
Hello
I am a foster carer and receive money to help with the cost of mileage taking my foster child to school and back. My fostering service pays 40p a mile to foster carers who take children to school, if they live more than 2 miles away. However, the payment comes from Education transport (not the fostering team) to me as the foster carer.

When I add up all of my fostering payments, do I include this mileage money, even though it has come from a different department within the local authority? but it is for my fostering duties. If I don't include it, where would I declare it?

Thanks
HMRC ADMIN 18
Subject: Re:Support for Foster Carers 18/09/2018 14:24:51
Hi

Unless the relationship is more similar to that of a landlord and tenant, than that between family members – the Supported Lodgings Scheme is one of the schemes which qualifies to use the care relief. Full details can be found on our HS236
Anonymous
Subject: Support for Foster Carers 18/09/2018 13:53:00
Hi
Can someone who looks after young people on behalf of the local authority as a 'Supported Lodgings Host' use qualifying care relief?
They have been assessed and approved by a fostering panel, but are not called a foster carer.
Thank you.
HMRC ADMIN 18
Subject: Re:Support for Foster Carers 10/09/2018 14:37:56
Hi
There has been no further information provided to HMRC as yet regarding the non-abolition of Class 2 National Insurance. When more information is provided it will be published on gov.uk.
HMRC ADMIN 18
Subject: Re:Support for Foster Carers 10/09/2018 14:31:11
Hi

A new trading allowance was brought into effect commencing 6th April 2017. This means that a self employed trader who earns less than £1000 gross in a tax year, does not need to declare the income to HMRC. There is more information about this on gov.uk here Tax free allowances on property and trading income
Anonymous
Subject: Support for Foster Carers 10/09/2018 13:31:02
hi

would you be able to tell me if the changes to Class 2 National Insurance are still taking place in April 2019? I was watching the news the other night and they were saying this has call changed and the government is not getting rid of Class 2 anymore. I have tried to look on the GOV.uk website but can't see anything formally that states this is the case.

Would you know?

Thanks
Anonymous
Subject: Support for Foster Carers 10/09/2018 13:31:02
Hi HMRC

I have read a post above about the trading income allowance but I'm still really confused.

Lots of foster carers are telling me, if my payments from fostering are below £1,000 I don't have to register as self-employed and I don't have to complete a tax return form.

I thought ALL foster carers have to register as self-employed? do we have a choice about registering as self-employed if our payments are below £1,000 for the year?

I'm a respite foster carer and only get about £500 a year in fostering payments.

Any help really appreciated because I am so confused.

Thanks