Foster care tax returns for carers requiring help with accountancy services and online care tax returns.










Why you should use us

We have worked in the care sector for many years and bring our experience in helping you to navigate the complexities of this specialised area in accounts preparation and completed online tax returns. Your role as carer is extremely demanding and rewarding and we can help you by taking care of all your paperwork and compliance obligations.

In fact the majority of our clients come from the care sector and we pride ourselves on value for money services and a thriving referral service from satisfied clients.

Please read on for additional foster care information and if you require our services then we would be delighted to assist you.


 Foster Carer Allowance

The allowance covers two parts, a maintenance allowance which covers the cost of looking after a young person and the reward element in recognition of the foster carer's skills. The income that you receive covers the cost of living for both you as the carer and and the child or young person you look after. The fostering payments will cover the following:-

1. Food - your weekly shopping bill will increase with another mouth to feed and the fostering payment will ensure that you have enough money to cover this expense.

2. Clothing - This will ensure that carers can buy new clothes as and when required. We all know that kids grow up quickly and constantly require new clothes.

3. Household bills - You will require additional money to meet your increased utility bills with an additional child living at home.

4. Travelling Expenses - You will need payments to cope with outings or travel to meet family or friends. These payments will cover basic travel arrangements. In certain circumstances additional payments might be made.

5. Other - An element of additional payment will be made for birthdays, christmas, school dinners and religious festivals.


How does your foster care tax relief work?

If your total receipts from qualifying care in the tax year do not exceed your qualifying amount, those receipts will be free from income tax for that year. Your total receipts from foster care are all the payments you receive from your local authority, health service body and independent  fostering agencies.


What is your qualifying foster care amount?

This consists of two parts which you should add together.

  • An annual fixed amount of £10,000 for each household
  • If you are a carer for less than a year then this amount should be apportioned for the year.
  • A weekly amount for each person placed with a carer. 

What to do if your qualifying care receipts exceed your qualifying amount

 You have two options for calculating the foster care tax you have to pay

  • The profit method - this is where you pay tax on the actual caring receipts minus your actual expenses and capital allowances.
  • The simplified method - where you pay tax on your actual receipts minus your qualifying amount. If you use this method then you don't have to consider your expenses and capital allowances.

You must consider the best method to use as your taxable profit will be less with one of the options available. You must inform HMRC if you want to use the simplified method.

Let us work through the complexities for you with our highly regarded foster care tax returns service. 


Are you in receipt of benefits

As a self employed carer in receipt of a fostering allowance you will be unable to claim Child Tax Credit or Child Benefit however you may be able to claim Working Tax Credit and other benefits such as income support and council tax benefits depending on your individual circumstances.

 What locations do we cover

We are foster care accountants for clients in areas such as Glasgow, Essex, Scotland, England and in fact many areas of the UK. All you have to do is ensure that you give us all the relevant information and send your paperwork recorded delivery. We communicate with our foster care clients at every step and make sure that you are taking the correct strategy for your foster care business. It is common that many foster carers will have no tax to pay but it is important that if you have a profit that we record all expenditure which relates to your foster care business.

Once we have prepared income and expenditure accounts with your authorisation we will send an online tax return for you.


How much do we charge

We will quote you a fixed fee quote with no hidden charges. We believe our fees are incredibly competitive and that you will be pleasently suprised at our foster care accounts fees. Don't delay let us help you take the pressure of your compliance obligations with a quick, efficient and valued client service.