Will I be taxed on fostering payments?

All fostering households are exempt from paying tax on the first £18,140 earnt from fostering. On top of this, they are also eligible for tax relief on some of their earnings over £18,140 for every week or part-week they have a child in care.

This tax relief rate is dependent on the age of the foster child(ren) and is as follows:

• £375 for children under 11

• £450 for children aged 11 or over

For further information and an example of what this would look like, see our How Much are Foster Carers Paid page.

You’ll need to declare all payments in your self-assessment tax return. Foster carers are classed as self-employed and you must register with your local office.