This section of the website is specifically designed to help foster and shared lives carers (including adult placement carers) understand how tax and NIC works.
Whilst the aim is to take most carers out of the tax system, so far as their income from caring is concerned, the way the rules work and recent changes need to be understood. In the following paragraphs we explain the various reliefs and claims which are available for foster and shared lives carers and which will help ensure you do not pay tax you are not liable for.
From 6 April 2010, there is a single, statutory income tax relief for all ‘qualifying care’. This includes foster and shared lives carers who provide care under government-approved social care schemes.
Up to 5 April 2010, foster carers had a separate relief in tax law and adult placement and respite carers were 80 dealt with under HMRC concessions. For the 2010/11 tax year only, the latter have the option to continue using the former HMRC concessions; but from 6 April 2011 they will have to follow the statutory rules.
We also cover a selection of other relevant issues which you might like to have a look at and finally take a look at tax credits.
This guide is split into the following five pages:
Qualifying Care Relief – foster carers and adult placement carers from 6 April 2010
Relief for adult placement and respite carers – rules to 5 April 2010 (and for the year to 5 April 2011, by election)
Other issues for carers and adopters
Can I claim tax credits?
CGT private residence relief for adult placement carers
