Tax and benefits

Being a foster carer can affect the amount of tax you pay and the benefits you're entitled to.

Tax

As a foster carer, you are considered self-employed by HMRC.

You'll need to register as self-employed and complete a self-assessment tax return each financial year.

For more information about tax arrangements for foster carers, visit the GOV.UK website.

Benefits

Being a foster parent can affect your benefits. If you’re claiming benefits you need to tell the organisation that pays you that you’re also getting a foster care allowance.

You can get disability benefits for your foster child if they meet the criteria. You may also be able to claim Carer’s Allowance if your foster child gets Disability Living Allowance or Personal Independence Payment.

Check which benefits you’re eligible for