Foster carers and shared lives carers
This section of the website is specifically designed to help foster carers, shared lives carers (including adult placement carers), certain kinship carers and those offering staying put care, understand how tax and National Insurance (NIC) works.
There is a single, statutory income tax relief for all ‘qualifying care’. This includes foster care, adult placement care, kinship care, staying put care and parent/child arrangements.
Whilst the aim of ‘qualifying care relief’ is to take most carers out of the tax system, so far as their income from caring is concerned, the way the rules work need to be understood.
In the following paragraphs we explain the various reliefs and claims which are available and which will help ensure you do not pay tax you are not liable for.
We also take a look at tax credits.
This guide is split into the following pages: