Article ID: 2098
Last updated: 02 Jan, 2021
You'll need to take certain things into account when completing the return, for example, the qualifying amounts that you can deduct from total care receipts. Deductions from total care receipts include:
Refer to the HMRC helpsheet on foster carers to guide you through the tax return as it gives useful scenarios and advice on calculating tax liability. Below the qualifying income thresholdWhere the receipts are below the qualifying income, carers relief is input as a blank self-employment schedule. The boxes referred to in the guidance are those for the Full form although it does not stipulate that the Full form has to be completed. As the HMRC guidance provides you with box reference, we would recommend using the HMRC Forms mode method for data entry. HMRC Forms mode:
SimpleStep mode:
Above the qualifying income thresholdIf the receipts are above the qualifying income, you will need to complete the boxes as above but please also complete the additional boxes below: HMRC Forms mode: Within the Self employment schedule as above, you will also need to enter the below details:
SimpleStep mode: Within the Self employment schedule as above, you will also need to enter the below details:
HMRC Instructions on completing the self employment pages are on page 2 of this document. If you and your partner share care responsibilities, you may want to consider becoming a business partnership, in which case please refer to HMRC's guidance: Fostering in a Partnership .
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