Finance

Chrysalis recognises the commitment that foster carers give, and the value that carers contribute to the organisation as well as to the lives of the children cared for. We therefore provide substantial payments for fostering.

Chrysalis foster carers receive a weekly fostering fee, plus age related allowances to cover the cost of looking after the child. You will continue to receive your fostering fee whilst taking planned breaks, and the allowance will be paid to the planned breaks carer.

Fostering mileage of up to 200 miles per week is included in the allowance. Mileage over that amount can be claimed at a rate of .40p per mile.

Foster carers are treated as self employed, and claim their fostering payments on a monthly invoice system. Chrysalis pays fees and allowances directly into your bank account.

Tax benefits for foster carers

Foster care tax relief was introduced with effect from 6 April 2003. Foster carers have an exemption from paying income tax, if the total amount of money they receive for their fostering does not exceed what the Inland Revenue calculate as the ‘qualifying amount’ .

A Simplified Example

Janet fosters one twelve year old with Chrysalis, for the whole of the tax year. Janet will receive approx £26,000 from Chrysalis for this. The Inland Revenue will calculate Janet’s ‘qualifying amount’ as follows:

Fixed amount – £10,000
Child (52 x £250) – £13,000

The total ‘qualifying amount’ that Janet can earn from fostering before needing to pay any income tax  would be £23,000. Her personal tax allowance will also be added to this amount.

If Janet did not have any other taxable income, her personal tax allowance would be added to the ‘qualifying amount’ and she would not have to pay any income tax on what she earned from fostering.

(exact payments and qualifying amounts are dependent on the age of the child fostered)

See www.hmrc.gov.uk/individuals/foster-carers for more information.

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