Fostering & taxes

How will I be taxed?

Because foster carers are self-employed you’ll need to complete a tax return to ensure you are accounting correctly for National Insurance and Income Tax.

As well as your £10,000 tax-free allowance, you’ll also get tax relief (known as Qualifying care relief) of between £200 (for children under 11) and £250 (for children aged 11 and over) for every week a child is in your care. This means that in many cases, you’ll pay little or no tax. To find out more, visit the HMRC web site.

You may also qualify for National Insurance credits if you don’t pay National Insurance, which will ensure you continue to qualify for certain benefits such as a State Pension.

Find out about foster carer payments.