HMRC registration
Guidance on registering for Self Assessment and establishing the appropriate self-employed tax record.
Tax returns for foster carers
Specialist tax support for foster carers
Clear help with HMRC registration, Qualifying Care Relief, record keeping and Self Assessment for foster carers and shared lives carers.
Why it matters
Fostering has its own tax rules and calculation methods.
Foster carers are generally treated as self-employed for tax purposes, but Qualifying Care Relief provides a specialist method for calculating taxable fostering profit. The result depends on the household’s care arrangements, payments and qualifying days.
We help you understand how the rules apply, organise the figures and complete the relevant Self Assessment pages. You receive a clear explanation of whether there is taxable profit and what records should be retained.
What is included
Fostering income and relief calculated clearly.
The review is based on your household, placements and fostering statements for the relevant tax year.
Payment review
Review of fostering statements, fees, allowances and other relevant care payments received.
Qualifying Care Relief
Calculation of the specialist qualifying amount using the household and placement information provided.
Method comparison
Where relevant, consideration of the simplified relief method against an actual profit calculation.
Self Assessment
Preparation of the relevant self-employment pages together with other personal income information.
Record guidance
A clear explanation of the statements, placement details and expense evidence that should be retained.
The difference
Use the rules designed specifically for qualifying care.
Fostering payments should not be treated like ordinary turnover without considering Qualifying Care Relief. A specialist calculation can change whether any fostering profit is taxable.
Generic returnFostering income treated without a specialist relief calculation.
Specialist returnPlacement information and Qualifying Care Relief reviewed properly.
Why specialist support helps
A clearer tax position for your fostering household.
Apply the correct method
Use the specialist qualifying care rules where the conditions are met.
Understand taxable profit
See clearly how fostering payments and the qualifying amount produce the result.
Complete the full return
Include fostering alongside employment, pensions, property or other personal income.
Keep suitable evidence
Retain the statements and placement information supporting the calculation.
Frequently asked questions
Common tax questions from foster carers.
Are foster carers treated as self-employed?
Foster carers are generally treated as self-employed for tax purposes and may need to register for Self Assessment, even where Qualifying Care Relief means little or no fostering profit is taxable.
What is Qualifying Care Relief?
It is a specialist tax relief for qualifying carers. Broadly, the qualifying amount is calculated using a household amount and additional amounts linked to the number and age of people in care and the period of care.
Will I always have tax to pay on fostering income?
Not necessarily. The result depends on the fostering payments, qualifying amount, calculation method and any other taxable income. We calculate the position using your actual information.
What records should a foster carer keep?
Keep annual and periodic payment statements, placement dates, information relevant to the people in care and, where an actual profit calculation may be used, appropriate expense records and receipts.
Ready when you are
Get specialist help with your fostering tax return.
Tell us about your fostering arrangements and the statements you receive, and we will explain the next steps.
Book your consultation →