Allowances And Fees
Community Foster Care recognises the skills, experience and commitment of foster carers caring for children and young people and so pays an allowance of £383.98 per child per week. This covers the cost of looking after a foster child and gives recognition to the work that carers do as part of the task of fostering. However, there are additional allowances paid for foster carers undertaking Parent & Child Assessments (these used to be called Mother and Baby Placements).
The Inland Revenue must be informed of all payments made to carers and an annual statement is sent to each foster carer by Community Foster Care. It is the responsibility of the carer to ensure that they are registered as self employed with the Inland Revenue and to meet their responsibility for any National Insurance contributions. It is also the responsibility of the carers to ensure that they complete an annual tax assessment, if required.
The current tax allowances for foster carers is £10,000 per annum plus £200 per week if the child is under 11 or £250 per week for children over the age of 11 (correct for tax year 2011-12).
Payments from fostering are not regarded as income as long as they are below these rates and do not need to be declared.
NB Allowances are not pay and would not normally affect any benefits received by the foster carer. Being on benefits does not prevent you from fostering.