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fostering
All payments that a foster carer receives are taken into account when determining whether they need to declare earnings to the tax office.
Taxable income is taken into account in calculating someone's Child Tax Credit and Working Tax Credit.
This includes someone's income from employment and self-employment, foster carers are classed as self employed.
However, the current rules mean many UK foster carers now pay no tax on the money they earn from fostering.
All foster carers receive an allowance to cover the cost of caring for a child in their home.
Independent fostering agencies
For foster carers working on behalf of an Independent Fostering agency, this is set by the individual agency, it can be dependent on age however is about £400 a week per child placed.
Local authority fostering
There are National guidelines which recommend basic levels of allowances for foster carers which Local Authorities tend to use. The average rate per child per week is about £140 plus other fees.
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