Foster Caring whilst being a contractor for a job - is anyone doing this?

[Scoobos]

I've asked my accountant, who I've been with for over 8 years or something and they say as its "not contracting accounting" they want 75+VAT per hour to give me advice, despite offering the usual "bespoke service" "individual advice tailored to your individual situation etc" .... They started off small and brilliant and like most seem to have turned into a big cookie cutter operation.. Anyhoo, rant over!

Here seems a good place to try get some help

So here's the problem I'm having:

I've been approved and am planning to start Foster Caring from April this year (next personal tax year).

I'm a LTD company director and work freelance for several clients at the same time but sometimes committed to a single client. I aim to keep to freelance in the future , now that I am fostering.

Rather unsurprisingly, no one in the application process has talked to me about tax affairs and I've now discovered that HMRC "expect" you to be registered as self employed.
Help and support for foster parents: Tax arrangements - GOV.UK (www.gov.uk)

HS236 Qualifying care relief: foster carers, adult placement carers, kinship carers and staying put carers (2019) - GOV.UK (www.gov.uk)
My wife, is a mix of self employed (online tutor) and Part Time employed by the local council.

My questions are - what should I do?
I'm not sure the HS236 Qualifying care relief is transferable to any other income. I also don't want to change status if it's not required and of no benefit to me. Should we instead look for my wife to do so?

Finally, it's a bit of a joke / sore point to me - as the "pay" is around 110 per week for caring for a child 24x7,365 and any other payments are for the child, not the carer! Total income would be 220 per week , but thats 110 "fees" and 110 children's money. Also 5k a year is not enough to keep a child, so its antipated that the "fees" will also be spent on the child.



Is anyone else fostering out there, how do you do it?

[courtg9000]

You try and do something nice for people and this crap happens.
Best advice I can give is for your and your wife to visit a local accountant and ask for help. Tell them everything. Include other stuff for example BTL etc and get them to review and advise.
Ask neighbours and local friends for referrals, references, testimonials and recommendations.
"Contractor specialist accountants" have long not been my cup of tea and this sort of thing is the reason why. This where they come unstuck. My view is that I could teach an accountant enough about IR35 and our industry or make him read some websites to learn. This approach has worked for me. It might not for everyone.
Sorry to hear that you are in this situation and I do hope you get it resolved soon.

[Snooky]

Can't you just complete the Self-Employed pages of your normal Self-Assessment return? If your profit isn't higher than the qualifying relief threshold it should be very straightforward, no?

[Lance]

Can't you just complete the Self-Employed pages of your normal Self-Assessment return? If your profit isn't higher than the qualifying relief threshold it should be very straightforward, no?

This^^^^^^^


The LTD company is totally irrelevant.
Find some fostering internet forums for specific advice, but if it's self-employed income then treat it as such. Oh... and sack the accountant for being a dick

[Fred Bloggs]

This^^^^^^^


The LTD company is totally irrelevant.
Find some fostering internet forums for specific advice, but if it's self-employed income then treat it as such. Oh... and sack the accountant for being a dick

+1

[Scoobos]

Thanks to all! Great advice and I'm glad I asked here

[PerfectStorm]

I've asked my accountant, who I've been with for over 8 years or something and they say as its "not contracting accounting" they want 75+VAT per hour to give me advice, despite offering the usual "bespoke service" "individual advice tailored to your individual situation etc" .... They started off small and brilliant and like most seem to have turned into a big cookie cutter operation.. Anyhoo, rant over!

I have to ask... is one of the Nixon Williams/SJD/Parasol types that have spent the last 3 years trying to put themselves out of business?

[Lance]

I have to ask... is one of the Nixon Williams/SJD/Parasol types that have spent the last 3 years trying to put themselves out of business?

3 years?????
More like >6

I sacked SJD early 2017 for being sh1t.And I had left it late simply as I couldn't be arsed with the hassle.

[courtg9000]

I have to ask... is one of the Nixon Williams/SJD/Parasol types that have spent the last 3 years trying to put themselves out of business?

It sounded like it to me.

[d000hg]

Also 5k a year is not enough to keep a child

Off-topic but that seems a lot based on talking to other parents and fosterers about the actual cost of having a child ("not much" is the answer I was surprised to hear from several sources).

When you say "they expect you to be self employed" does anyone care or check or is that their advice only? Does the organisation paying you have any right to look at this, or talk to HMRC?
Are you sure they're not just making it clear that you are responsible for the taxable income, since most fosterers will only ever have used PAYE and be inexperienced with anything else and risk failing to do SATRs without some warning?