Foster carers are identified as self-employed and are paid a weekly fostering fees for each child or young person they look after. The amount of fostering fees and allowances paid depends on various factors such as age, type of placement and level of needs. At Elite Fostering we believe that foster carers do a great job of caring for children, sometimes with difficult and complex behaviours. Fostering is no longer considered as a philanthropic task. It is a noble profession where foster carers are treated as professionals who do a remarkable job utilising their skills, expertise, time and energy.

At Elite Fostering, you will receive competitive fostering fees and various allowances for looking after children and young people.

For foster children, we pay various additional allowances such as; Religious Festivals, Travel, Birthday, Holiday.

For foster carers, we pay various additional allowances such as; – Holiday, Loyalty Bonus and Respite.

Tax Free Earnings

Tax Exemption

There’s a fixed tax exemption of up to £10,000 per year (this will be less for shorter periods), which is shared equally among any foster carers in the same household. This means you don’t have to pay tax on the first £10,000 income you make from fostering.

Tax Relief

On top of the £10,000 exemption, you also get tax relief for every week (or part week) that a child is in your care. This means you don’t have to pay tax on some of your earnings over £10,000.

Age of Child – Under 11

Tax Relief – £200 per child

Age of Child – Over 11

Tax Relief – £250 per child

Example
Laura is a foster carer for a 14-year-old for the whole of the year and for an 8-year-old for 10 weeks of the year. She doesn’t have to pay tax on the first £25,000 she earns: Tax exemption = £10,000 + 
Child 1 (52 x £250) = £13,000
 + 
Child 2 (10 x £200) = £2,000 … Total = £25,000

(Information of figures taken from HMRC website).
https://www.gov.uk/foster-carers/help-with-the-cost-of-fostering

For more details on computing tax, please contact the office.

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