Foster Carer Allowances
Allowances can vary for each child but according to the government’s website the allowances average out to £400 a month for a foster child across the UK and if you’re based in London then its approximately £450 a month. There are other factors that come into play as well as if there are any special needs your child has.
If you like the idea of working from home and you enjoy looking after kids or young people, then fostering can be an ideal job for you. Fostering can fit it around your own family commitments.
All foster carers are assessed and approved either through an agency or Local Authority and they are all paid foster care allowances. Foster carers are seen by Inland Revenue as self-employed.
There is a fixed Tax exemption of £10,000 which is equally shared amongst the foster carers in the same household. This means you don’t pay tax on the first £10,000 income you make from fostering.
On top of that, you also get a tax relief every week that a child is in your care. the figures are as below taken from the government’s website;
Foster care allowances which are given for tax relief:
- up to £10,000 per year
- £200 per week for each child under 11
- £250 for each child 11 or over.
The rules are different when it comes to income support and jobseeker’s allowance. In some cases, you might be able to claim either Working Tax Credit or Income Support, Job Seeker’s Allowance or even both.
When it comes to Child Tax Credit you are only entitled to claim for your own children or ones you are mainly responsible for, you cant claim for children you are paid to look after.
Working Tax Credit
Foster carers are treated as self-employed workers, they can claim Working Tax Credits if they are working a minimum of 16 hours per week.
If the foster carer has another part time job, the hours worked from that job can also be included. You can also include hours spent such as cleaning the business and keeping accounts.
Foster carers provide a very high level of care for the foster child and they engage with various professionals to make sure the primary goal is achieved which is providing the best care for the child.
When it comes to choosing the right organisation to foster with, it is important to look at the pros and cons of Independant Fostering Agencies as well as Local Authorities. See the level of support they both provide, if you know any foster carers you can also ask advice from them also.
