There are several financial considerations to be made when deciding to become a foster carer, and which need to be reviewed if you already are a carer, as the tax and national insurance implications can be complex depending on you and your partner’s circumstances.
Are you better off running the business as a Sole Trader or Partnership?
Are you paying too much Tax?
Each household’s situation is different and it is therefore advisable to get some professional advice from and an accountant, as you may be required to submit annual accounts and a self-assessment tax return to H M Revenue & Customs, and pay Income Tax and National Insurance.
The Foster Care Scheme works in two ways and depends upon the total receipts from Foster Care and if you or your partner have other income, and how much you earn between you. It is a bit of a mine field, but AccountancyPlus can help!
What we’ll do for you!
Carry out an annual financial health check to review your situation.
Process your Receipts and Expenses from you bank accounts and receipts.
Advise you of the best treatment of your income for tax purposes.
Register you with the HMRC Tax and NI Contributions Agency – if you haven’t done so already.
Prepare and submit your annual tax return and Fostering Income statement.
Provide you with an indication of your potential tax and NI liability based on your individual circumstances.
Check your tax assessments and advise you when your tax liability is payable.
Answer any queries that may arise.
Our fees will depend on whether or not you are a Sole Trader or Partnership.
Call 0113 292 4784 for more information.